2011 (1) TMI 1537 - AT - Income Tax

Summary

Issues involved: Appeal against disallowance of deduction u/s 80IA(4)(ii) for Assessment Year 2006-07.

Summary:

1. The appellant, a telecom firm, is a franchisee of MTNL providing telecommunication services within a building. The appellant claimed deduction u/s 80IA(4)(ii), disallowed by the Assessing Officer due to previous disallowance. The ld. CIT(A) allowed the claim based on Tribunal orders.

2. Grounds 1 and 2 of the appeal challenged the allowance of deduction u/s 80IA(4)(ii) to the appellant as a provider of Basic Telecom Services under MTNL's franchisee scheme, citing a pending issue.

3. The ld. DR supported the Assessing Officer's order, while the appellant's counsel cited Tribunal decisions in favor of the appellant.

4. After considering submissions and records, the Tribunal found merit in the appellant's plea. Previous Tribunal orders supported the appellant's eligibility for deduction u/s 80IA. The Tribunal upheld the ld. CIT(A)'s decision to allow the deduction, rejecting the revenue's grounds.

5. Consequently, the revenue's appeal was dismissed, and the order was pronounced on 14.1.2011.

This summary captures the key issues, arguments, and the Tribunal's decision in the case without revealing any specific party names.