2012 (1) TMI 377 - AT - Income Tax

Summary

Issues Involved: Appeals against orders of Ld. C.I.T.(A)-XII, Kolkata for assessment years 2006-07 & 2007-08 regarding deductions u/s. 80-IA and deletion of addition on prior period expenses.

Deductions u/s. 80-IA:
The revenue challenged the deductions allowed by Ld. C.I.T.(A) for development of bus shelters, toilet blocks, and foot over-bridges, contending they do not qualify as infrastructure facilities u/s. 80IA(4) of the Act. However, based on precedent decisions, the Tribunal upheld the orders of Ld. C.I.T.(A) as the facilities were deemed functionally necessary and part of highway infrastructure, deciding the issue against the revenue and in favor of the assessee for both assessment years.

Deletion of Addition on Prior Period Expenses (2006-07):
Regarding the deletion of addition on account of prior period expenses for assessment year 2006-07, the Tribunal found that the matter should be remanded to the file of ld. A.O. for proper adjudication on merits and in accordance with law. The Tribunal allowed the second issue for assessment year 2006-07 to be treated as allowed for statistical purposes, providing the assessee an opportunity to justify the claim with relevant material. Consequently, the revenue's appeal for 2006-07 was partly allowed for statistical purposes, while the appeal for 2007-08 was dismissed.

Separate Judgement: Sri S.V.Mehrotra, Accountant Member And Sri N.Vijayakumaran, Judicial Member delivered the judgment.