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Issues involved: Appeal against order allowing deduction u/s 80IB of the Income Tax Act for Banas-II plant.
Summary: The appeal was filed by the Revenue against the order of the Ld. Commissioner of Income Tax (Appeals)-XV Ahmedabad, allowing a deduction of &8377; 7124640/- u/s 80IB for the Banas-II plant. The assessee's claim u/s 80IB was initially rejected during scrutiny assessment for the assessment year 2007-08. However, the CIT(A) allowed the claim based on the decision of a Co-ordinate Bench of the Tribunal in the assessee's own case. The Revenue challenged this decision before the ITAT Ahmedabad. The Revenue argued that the assessment order should have been upheld, while the assessee contended that the issue was already decided in their favor by a Co-ordinate Bench in a previous case. The ITAT reviewed the submissions, the previous decision, and the material on record. The Co-ordinate Bench had previously allowed a deduction u/s 80IB for the assessee's Banas-II Dairy Expansion Plant, and the CIT(A) had followed this precedent for the current assessment year. The ITAT found that the decision of the Co-ordinate Bench in the previous case was applicable to the current situation. The Revenue failed to provide reasons why the previous decision should not be followed. Therefore, the ITAT upheld the order of the CIT(A) and dismissed the appeal of the Revenue, concluding that there was no infirmity in the CIT(A)'s decision based on the precedent set by the Co-ordinate Bench. In conclusion, the ITAT dismissed the Revenue's appeal, affirming the allowance of the deduction u/s 80IB for the Banas-II plant as per the decision of the Co-ordinate Bench in the assessee's own case for the assessment year 2006-2007.
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