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2018 (4) TMI 556 - AT - Income TaxDisallowing deduction u/s 80IB(5) - addition based on the assessment made for A.Y. 2011-12 wherein similar disallowance was made by the AO - Held that - On appeal the learned CIT(A), following the order of his predecessor for assessment years 2010-11 and 2011-12 allowed the claim of the assessee. On a perusal of the order of the Tribunal for assessment years 2010-11 and 2011-2 we find that the Tribunal allowed the claim of the assessee - we uphold the order of the learned CIT(A) in allowing the claim for deduction under Section 80IB(5) of the Act to the assessee. - Decided in favour of assessee.
Issues:
- Appeal against CIT(A)'s order for A.Y. 2012-13 denying deduction under Section 80IB(5) of the Income Tax Act, 1961. Analysis: - The Revenue appealed against the CIT(A)'s order, contending that the deduction under Section 80IB(5) was wrongly denied. - The assessee argued that the issue was covered by a previous decision in their favor for assessment years 2010-11 and 2011-12. - The Tribunal had consistently held that the assessee was entitled to the deduction under Section 80IB for income earned through job work for its sister concern. - The AO had disallowed the deduction based on the premise of reconstruction of an existing business, which the assessee refuted by highlighting the establishment of a new unit with no reconstruction involved. - The Coordinate Bench had previously ruled in favor of the assessee for assessment years 2010-11 and 2011-12, allowing the deduction under Section 80IB. - The D.R. supported the AO's order, leading to a hearing where the Tribunal examined the arguments and previous orders. - The Tribunal noted that the CIT(A) had allowed the claim based on the previous decision for A.Y. 2007-08, where the Tribunal had already allowed the claim of the assessee. - Since there were no changes in the facts and circumstances, the Tribunal upheld the CIT(A)'s order, dismissing the Revenue's appeal. - The Tribunal pronounced the order on 21st February 2018, affirming the allowance of the deduction under Section 80IB(5) to the assessee for A.Y. 2012-13.
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