2014 (8) TMI 1177 - AT - Income Tax

Deduction u/s 80-IA - as alleged assessee company executed works contract on behalf of other company and assessee company is only a sub-contractor executing contract on behalf of others - HELD THAT - Isuue decided in favour of the assessee in its own case by the Tribunal for the assessment years 2003-04 to 2009-10 The issue has been consistently considered and decided by Income-tax Appellate Tribunal in assessee s own case for all the earlier assessment years from 2003-04 to 2008-09. The Tribunal has accepted the contention of the assessee in the matter of its claim made under sec.80-IA. The case has been considered even after Explanation to sub-sec. (13) of sec.80-IA was inserted. Reference may be made to the orders of the Tribunal for assessment years 2007-08 and 2008-09. - Decided against revenue

Summary

Issues:
Appeal against order of Commissioner of Income Tax for assessment year 2010-11 - Eligibility for deduction under section 80-IA - Execution of works contract as a sub-contractor - Interpretation of Explanation to subsection 13 of section 80-IA - Consistency in Tribunal's decisions for earlier assessment years.

Analysis:
The appeal was filed by the Revenue against the order of the Commissioner of Income Tax for the assessment year 2010-11, challenging the eligibility of the assessee for deduction under section 80-IA. The Revenue contended that the assessee company executed works contracts as a sub-contractor on behalf of another company, making it ineligible for the deduction under section 80-IA, as per the Explanation to subsection 13 of section 80-IA. The Tribunal considered the arguments presented by both sides, where the counsel for the assessee relied on previous Tribunal orders in favor of the assessee for assessment years 2003-04 to 2009-10.

Upon reviewing the orders of the lower authorities and the decisions of the co-ordinate Bench of the Tribunal in the assessee's own case for earlier assessment years, the Tribunal found that the issue under consideration was already settled in previous orders. The Tribunal referred to its decision in ITA No.1762/Mds/2012 dated 21.11.2012 for the assessment year 2009-10, where it was observed that the issue was squarely covered. The Tribunal highlighted that the case has been consistently considered and decided in favor of the assessee for all earlier assessment years from 2003-04 to 2008-09, even after the insertion of the Explanation to subsection 13 of section 80-IA.

Based on the precedent set by previous Tribunal decisions and the consistent interpretation of the law in the assessee's favor, the Tribunal dismissed the appeal of the Revenue. The Tribunal emphasized that the appeal was liable to be dismissed in line with its previous rulings. The order was pronounced on August 13, 2014, in Chennai, upholding the decision to dismiss the Revenue's appeal.

This detailed analysis of the judgment highlights the key issues involved, the arguments presented by both sides, the Tribunal's interpretation of the law, and the basis for dismissing the Revenue's appeal in favor of the assessee.