2018 (7) TMI 2343 - AT - Income Tax

Deduction u/s. 80IA(4)(iii) - assessee was not able to submit notification of CBDT which is mandatory as per Rule 18(C)(4) of the I.T. Rules for claiming deduction u/s. 80IA(4)(iii) - HELD THAT - The issue raised by the revenue in the grounds of appeal has already been addressed by the Tribunal in assessee s own case for the AY 2007-08 wherein held that there is nothing to suggest that deduction u/s. 80IA(4)(iii) is allowable from the date of Notification by the CBDT. In coming to the aforesaid conclusion, the Tribunal has placed reliance on the decision of Creative Infocity Ltd. 2012 (4) TMI 117 - GUJARAT HIGH COURT In view of the aforesaid decision of the Tribunal in assessee s own case, which decision was also followed by the Tribunal in assessee s own case for the AYs 2009-10 to 2011-12, we are of the view that there is no merit in this appeal by the revenue. Consequently, the appeal by the revenue is dismissed.

Summary

Issues:
Appeal against CIT(Appeals) order for AY 2014-15 - Claim of deduction u/s. 80IA(4)(iii) - Compliance with CBDT notification requirement.

Analysis:
The appeal by the revenue was against the CIT(Appeals) order concerning the deduction claimed by the assessee u/s. 80IA(4)(iii) for AY 2014-15. The assessee, a company, claimed a deduction for operating an industrial technology park on land allotted by KIADB. The AO rejected the claim citing prior rejections for AYs 2007-08 & 2008-09. However, the CIT(Appeals) allowed the claim after noting that the ITAT had approved similar claims for the earlier years. The ITAT found that the assessee had fulfilled the conditions for the deduction, as per the approval from the Ministry of Commerce and Industry, and the CBDT notification issued later did not affect the eligibility. The ITAT relied on the decision in Creative Infocity Ltd case, stating that once approval is granted, the CBDT notification is a formality. The Tribunal dismissed the revenue's appeal, citing its previous decisions and the Gujarat High Court ruling. The deduction u/s. 80IA(4)(iii) was held to be applicable from the date of approval by the Ministry, not the CBDT notification date.

In conclusion, the ITAT upheld the CIT(Appeals) decision, allowing the deduction claimed by the assessee u/s. 80IA(4)(iii) for AY 2014-15. The Tribunal emphasized that compliance with the Ministry's approval conditions sufficed for eligibility, irrespective of the CBDT notification date. The Gujarat High Court ruling and the ITAT's previous decisions were pivotal in determining the eligibility for the deduction, leading to the dismissal of the revenue's appeal.