2021 (2) TMI 167 - AT - Income Tax

Denial of the deduction u/s.80IA - assessee had not directly entered into agreement with Government or any statutory body and thus the condition mentioned in clause b of section 80IA 4 i of the Act was not complied with under the facts - HELD THAT - Taking a consistent view 2015 (11) TMI 401 - ITAT BANGALORE we are of the opinion that the facts and circumstances of the case being the same for this assessment year also, assessee has to be granted deduction u/s. 80IA of the Act. It is not possible for us to review the earlier order of the Tribunal which is not disturbed by any higher forum so as to take a different view on the issue disputed before us. Taking a consistent view, we are inclined to reject the arguments of the ld. DR and allow the grounds taken by the assessee in this appeal.

Summary

Issues Involved:
Denial of deduction under section 80IA of the Income-tax Act due to failure to directly enter into an agreement with the Government or any statutory body.

Analysis:

Issue 1: Denial of Deduction under Section 80IA
The appellant contested the denial of a deduction claimed under section 80IA of the Act, arguing that the appellant had entered into an agreement with BIAL for developing, operating, and maintaining a cargo facility under the BOT method. The appellant asserted that this agreement fulfilled the requirements of section 80IA[4][i] of the Act. The appellant cited previous Tribunal orders in their own case for earlier assessment years to support their claim for deduction. The ld. DR, on the other hand, argued that the appellant, being a sub-contractor, was not eligible for the deduction under section 80IA of the Act. The Tribunal, after hearing both parties and examining the material on record, noted that the issue had been previously considered in the appellant's own case, and since the facts and circumstances remained the same, the appellant was entitled to the deduction under section 80IA of the Act.

Issue 2: Interpretation of BIAL as a Statutory Body
The ld. DR contested the Tribunal's reliance on a judgment of the Hon'ble High Court of Karnataka regarding whether BIAL was a statutory body. The ld. DR argued that the judgment did not specifically address the applicability of BIAL being a statutory body under the Income-tax Act. The Tribunal, however, referred to previous orders where the High Court had held BIAL to be a statutory body. The Tribunal emphasized that the High Court's decision preceded the Tribunal's order, and therefore, the issue of whether BIAL was a statutory body under section 80IA[4][i] of the Act needed re-consideration. The Tribunal, respecting the High Court's decision, upheld that BIAL was a statutory body and, consequently, dismissed the Revenue's appeal.

In conclusion, the Tribunal maintained a consistent view based on previous orders and upheld the appellant's entitlement to the deduction under section 80IA of the Act. The Tribunal also confirmed BIAL's classification as a statutory body, as per the judgment of the Hon'ble High Court of Karnataka. The appeal by the assessee was allowed, and the decision was pronounced on January 27, 2021.