2014 (12) TMI 1245 - AT - Income Tax

Eligibility to claim deduction under sec.80IA - Held that - We find that the issue in appeal has already been considered and decided in favour of the assessee by the Hon ble Jurisdictional High Court in the case of Velayudhaswamy Spinning Mills 2010 (3) TMI 860 - Madras High Court .- Decided in favour of the assessee.

Summary

Issues:
Eligibility of assessee to claim deduction under sec.80IA of the Income-tax Act, 1961.

Analysis:
The appeal was filed by the Revenue against the order of the Commissioner of Income-tax(Appeals)-II, Coimbatore, for the assessment year 2010-11. The sole issue raised by the Revenue was regarding the eligibility of the assessee to claim a deduction under sec.80IA of the Income-tax Act, 1961. The assessee, engaged in the jewellery business and power generation from windmills, claimed a deduction of `86,31,831/- under sec.80IA(4) of the Act based on a decision of the Hon'ble Jurisdictional High Court in a specific case. The Assessing Officer rejected the claim citing a pending Special Leave Petition before the Hon'ble Supreme Court challenging the High Court's decision. Subsequently, the assessee appealed to the Commissioner of Income-tax(Appeals).

The Commissioner of Income-tax(Appeals) upheld the claim of the assessee, relying on the decision of the Hon'ble Jurisdictional High Court in the mentioned case. Upon hearing both sides, the Appellate Tribunal noted that the issue had already been decided in favor of the assessee by the Hon'ble Jurisdictional High Court. Consequently, the Tribunal found no merit in the Revenue's appeal and dismissed it. The cross objections filed by the assessee were also dismissed as infructuous. The order was pronounced on a specified date in Chennai.

This judgment primarily revolved around the interpretation and application of sec.80IA of the Income-tax Act, 1961 concerning the eligibility of the assessee to claim a deduction. The Tribunal's decision was based on the precedent set by the Hon'ble Jurisdictional High Court in a similar case, which supported the assessee's position. The Tribunal's analysis focused on the legal aspects of the case, considering the relevant provisions of the Act and the previous judicial interpretations. Ultimately, the Tribunal's decision aligned with the High Court's interpretation, leading to the dismissal of the Revenue's appeal and the cross objections of the assessee.