2017 (9) TMI 1770 - AT - Income Tax

Claim of deduction u/s 10B - alternate claim of deduction under section 10A - Held that - The issue raising is regarding alternate claim of deduction under section 10A of the Act wherein the CIT(A) after denying the deduction under section 10B had asked the Assessing Officer to examine the same in accordance with law. In view of the plea of assessee before the Tribunal in assessee s own appeal for the instant assessment year and also because of setting aside of the issue of the claim of deduction under section 10B to the CIT(A) the alternate claim for deduction under section 10A of the Act does not stand. Accordingly we reverse the findings of CIT(A) in this regard. The assessee admittedly had not asked for the alternate claim of deduction under section 10A as is noted by the Tribunal in para 10 of its order dated 07.06.2017. We hold that the assessee is not entitled to the alternate claim of deduction under section 10A of the Act. The grounds of appeal raised by the Revenue are thus allowed.

Summary

Issues:
Appeal against CIT(A) order for assessment year 2011-12 under section 143(3) r.w.s. 144A of the Income Tax Act 1961.

Analysis:
1. The Revenue raised grounds against the CIT(A)'s order, challenging the denial of deduction under section 10B of the Act and the consideration of an alternate claim under section 10A. The CIT(A) allowed the alternate claim under section 10A based on previous Tribunal decisions. The Revenue sought to vacate the CIT(A)'s order and restore the Assessing Officer's decision.

2. The appeal was scheduled for hearing but adjourned due to the pending order on the assessee's appeal. On the subsequent hearing date, neither the assessee nor a representative appeared. The Revenue argued that since the Tribunal had already decided on the assessee's appeal, the issue should be resolved in favor of the Revenue.

3. The primary issue was the denial of deduction under section 10B and the subsequent consideration of an alternate claim under section 10A. The CIT(A) relied on previous Tribunal decisions to allow the alternate claim under section 10A. However, the Tribunal found discrepancies in the grounds for the alternate claim and remanded the matter to the CIT(A) for further examination.

4. The Revenue's appeal focused on the alternate claim for deduction under section 10A. Given the previous decision on the assessee's appeal and the remand of the section 10B issue, the Tribunal reversed the CIT(A)'s decision to allow the alternate claim under section 10A. The Tribunal noted that the assessee did not specifically request this alternate claim, leading to the disallowance of the deduction under section 10A.

5. Consequently, the Revenue's appeal was allowed, overturning the CIT(A)'s decision on the alternate claim under section 10A. The Tribunal held that the assessee was not entitled to the deduction under section 10A as there was no explicit request for it. The grounds of appeal raised by the Revenue were upheld, leading to the allowance of the Revenue's appeal.

In conclusion, the Tribunal allowed the Revenue's appeal, reversing the CIT(A)'s decision on the alternate claim for deduction under section 10A, as the assessee did not explicitly seek this deduction.