2013 (1) TMI 896 - AT - Income Tax

Summary

Issues involved: Appeal against CIT(A) order directing AO to allow deduction u/s 80IB(10); Acceptance of claim by CIT(A) despite restriction in Board's notification; Eligibility for deduction u/s 80IB(10) based on furnished documents; Admission of new evidence in contravention of Rule 46.

Deduction u/s 80IB(10): Assessee, a builder, claimed deduction u/s 80IB(10) for a project approved by local authority. AO found non-fulfillment of basic condition, disallowed deduction. CIT(A) allowed deduction citing CBDT clarification making project eligible for deduction from AY 2005-06 onwards. ITAT upheld CIT(A) decision based on prior year's ruling and rejected department's appeal.

Board's Notification Restriction: Department argued restriction in Board's notification dated 05.01.2011, limiting deduction for projects approved between 01.04.2004 to 31.03.2008. CIT(A) clarified applicability of notification to all projects approved within specified period, making income eligible for deduction u/s 80IB(10) from AY 2005-06 onwards.

Eligibility based on Furnished Documents: Assessee submitted documents to CIT(A) supporting eligibility for deduction u/s 80IB(10), not previously furnished to AO. CIT(A) considered documents and allowed deduction based on fulfillment of conditions, leading to ITAT upholding the decision.

Admission of New Evidence: Department raised objection to CIT(A) admitting new evidence contrary to Rule 46. ITAT noted issue carried from previous year, lack of specific evidence cited by department, and rejected department's grounds on this issue.

General Grounds: Remaining grounds raised by department were of general nature and were dismissed by ITAT without detailed discussion.

In conclusion, ITAT Mumbai dismissed the department's appeal against CIT(A) order allowing deduction u/s 80IB(10) for the assessee, based on fulfillment of conditions and prior rulings. The decision was upheld regarding the applicability of Board's notification and admission of new evidence, with general grounds being rejected.