2020 (12) TMI 167 - AT - Income Tax

Reopening of assessment u/s 147 - Deduction u/s 80IB - HELD THAT - As gone through the order of lower authorities and the order of Co-ordinate Bench of Tribunal for AY.2007-08 2015 (9) TMI 1183 - ITAT AHMEDABAD . We have seen that the Assessing Officer reopened the case for assessee for the year under consideration on the ground that similar claim of deduction under section 80IB was disallowed in AY.2007-08. The Assessing Officer in reassessment order dated 20.03.2015 disallowed deduction under section 80IB of ₹ 3.11 crore. CIT(A) allowed relief to the assessee by following the order of Tribunal above. Considering the fact that on identical ground of appeal on similar set of fact the assessee was allowed relief by Co-ordinate Bench of Tribunal. Respectfully following the same we do not find any merit in the ground of appeal raised by revenue.

Summary

Issues involved:
Appeal against order allowing deduction under section 80IB for assessment year 2007-08.

Analysis:
1. The appeal was filed by the revenue against the order of the ld. Commissioner of Income Tax (Appeals) dated 30.03.2017, concerning the deduction claimed under section 80IB for the assessment year 2007-08.

2. The assessee, engaged in manufacturing electric control panels, claimed deduction under section 80IB in the return of income for AY 2008-09. The Assessing Officer reopened the assessment for AY 2007-08 under section 147, disallowing the deduction claimed under section 80IB.

3. The Assessing Officer disallowed the deduction of ?3.11 crore under section 80IB, citing a similar disallowance in AY 2007-08. However, the ld. CIT(A) reversed the Assessing Officer's decision and allowed the deduction under section 80IB, following the Tribunal's decision in the assessee's case for AY 2007-08.

4. The revenue challenged the decision before the High Court, but it was dismissed due to low tax effect. The Tribunal, in the AY 2007-08 order, accepted the assessee's contention that manufacturing started in March 2004.

5. The revenue's representative accepted that the ld. CIT(A) followed the AY 2007-08 order, which was later reversed by the Tribunal. The revenue supported the Assessing Officer's order disallowing the deduction.

6. After considering submissions and previous orders, the Tribunal found no merit in the revenue's appeal. The Tribunal affirmed the ld. CIT(A)'s order, as no contrary facts or law were presented to warrant a different decision.

7. The Tribunal, in line with the previous decision for AY 2007-08, allowed the appeal of the assessee, upholding the deduction under section 80IB.

8. Therefore, the appeal of the assessee was allowed, and the order was pronounced on 12/11/2020 during the appeal hearing.