2013 (3) TMI 710 - AT - Income Tax

Summary

Issues involved: The issue in this case revolves around the eligibility of the assessee for deduction u/s. 80IA of the Income-tax Act, 1961 in relation to a new power plant being recognized as a new industrial undertaking.

Summary:

Issue 1: Eligibility for deduction u/s. 80IA of the Act
The assessee filed a Miscellaneous Application (MA) contending that the Tribunal had dismissed the issue raised by the assessee regarding eligibility for deduction u/s. 80IA of the Act in respect of a new power plant. The Tribunal had based its decision on a previous order from AY 2001-02. The assessee pointed out a similar mistake in the Tribunal's order for AY 2001-02, which led to the Tribunal recalling its decision on the issue in that year. During the hearing, the AR of the assessee reiterated the contentions and submitted that the Tribunal's orders should be recalled for deciding the issue afresh. The Revenue, represented by the SRDR, argued that there was no mistake in the Tribunal's order.

Decision:
After considering the submissions, the Tribunal found that the only basis for deciding against the assessee on the issue in the present year was the Tribunal's order for AY 2001-02. Since the decision on this issue in AY 2001-02 had been recalled for a fresh decision, the Tribunal decided that the issue in the present year also needed to be decided afresh following the fresh decision in AY 2001-02. Consequently, the Tribunal recalled its order in respect of ground No.3 and directed the Registry to schedule the appeal for hearing to decide the issue afresh. As a result, the MA of the assessee was allowed.

Conclusion:
The Tribunal's decision highlights the importance of consistent application of legal principles and the need to revisit decisions when errors are identified, ensuring fair treatment for the assessee in matters of tax deductions u/s. 80IA of the Income-tax Act, 1961.