2021 (3) TMI 1010 - AT - Income Tax

Eligibility for deduction u/s. 80IA(4) - According to AO assessee is a works contractor - HELD THAT - We note that there was no dispute by the ld. DR the facts involving the issue on hand are identical to A.Ys. 2004-05 to 2010-11 2011-12 to 2012-13 and 2013-14 and no order placed on record by the Revenue contrary to the findings of this Tribunal or reversing or modifying order of ITAT by the Hon ble High Court of Bombay. Therefore we hold that the assessee is entitled for claiming deduction u/s. 80IA(4) of the Act and we do not find any infirmity in the order CIT(A) and it is justified. Accordingly the grounds raised by the Revenue are dismissed.

Summary

Issues:
Whether the assessee is eligible for deduction u/s. 80IA(4) of the Act for the assessment year 2014-15?

Analysis:
The appeal by the Revenue was against the order passed by the Commissioner of Income Tax (Appeals)-1, Kolhapur for the assessment year 2014-15. The only issue for consideration was the eligibility of the assessee for deduction u/s. 80IA(4) of the Act. The assessee claimed a deduction of &8377; 20,80,89,446 under sections 80IA(4)(i)(a)&(b) of the Act, stating it was available to any enterprise involved in developing, operating, and maintaining infrastructure facilities. The Assessing Officer (AO) considered the assessee as a works contractor primarily engaged in infrastructure construction. The AO disallowed the deduction based on an appeal pending before the Hon'ble High Court of Bombay and the explanation to section 80IA(4) of the Act. However, the CIT(A) held the assessee eligible for the deduction, considering the ITAT's order in the assessee's own case for previous assessment years.

The ITAT noted that the assessee had presented orders from previous years where the Tribunal had allowed the deduction u/s. 80IA(4) of the Act. The Tribunal observed that the issue of the assessee's eligibility for the deduction had been consistently decided in favor of the assessee in previous years. The ITAT found no reason to interfere with the CIT(A)'s decision to follow the Tribunal's orders in the assessee's own case for allowing the deduction u/s. 80IA(4) of the Act. The Revenue's grounds for appeal were dismissed as the facts remained identical to previous assessment years, and there was no contradictory order from the Revenue or the High Court of Bombay.

The ITAT concluded that the assessee was entitled to claim the deduction u/s. 80IA(4) of the Act for the assessment year 2014-15. The Tribunal found no infirmity in the CIT(A)'s order and upheld the decision, dismissing the appeal of the Revenue. The judgment was pronounced in the open court on 24th March 2021.