2015 (10) TMI 1471 - AT - Income Tax

Disallowance under section 80IB - Held that - Since the same issue has been decided in favour of the assessee by the Tribunal in assessee s own case wherein held that the A.O. concluded that the deduction under section 80IB was not allowable for assessment year 2005 06 onwards, whereas the deduction under section 80IB in respect to Unit V has already been granted while passing the assessment order under section 143(3). Therefore, if the order of the A.O. for assessment year 2003 04 or 2004 05 was wrong, then those orders were to be rectified first, and hereafter the deduction under section 80IB could have been withheld for assessment year 2005 06 onwards. Accordingly, we held that the disallowance of deduction under section 80IB for assessment year 2005 06 to 2007 08 were not correct. Accordingly, we direct the A.O. to allow the deduction under section 80IB for these three years, we do not find any reason to deviate from the same. - Decided in favour of assessee.

Summary

Issues:
Disallowance under section 80IB for assessment years 2009-10 and 2010-11.

Analysis:
The appeals were filed by the Revenue against the orders passed by the Commissioner (Appeals)-I, Nagpur, for the assessment years 2009-10 and 2010-11. The common issue in both appeals was the deletion of disallowance under section 80IB of the Income Tax Act, 1961. The Tribunal decided to hear and dispose of both appeals together due to the common issue. The Counsel for the assessee pointed out that a similar issue in earlier years had been decided in favor of the assessee by the Tribunal. The Departmental Representative did not contest this submission. The Tribunal noted that the assessee had been allowed deduction under section 80IB for earlier years as well. Referring to the Tribunal's earlier decision in the assessee's case for the assessment years 2005-06, 2006-07, and 2007-08, the Tribunal found that the deduction under section 80IB had been allowed. The Tribunal examined the assessment orders and internal production-related documents to establish the commencement of production for the relevant units. The Tribunal cited various case laws and concluded that the disallowance of deduction under section 80IB for the assessment years 2005-06 to 2007-08 was not justified. The Tribunal directed the Assessing Officer to allow the deduction for those years. Since the issue had been decided in favor of the assessee by the Tribunal in earlier years and there was no reversal by the High Court, the Tribunal upheld the order of the Commissioner (Appeals) deleting the disallowance for the assessment years 2009-10 and 2010-11. Consequently, the Revenue's appeals for both assessment years were dismissed.