2015 (8) TMI 124 - AT - Income Tax

Disallowance of deduction claimed under section 80IA - CIT(A) allowed claim - Held that - The business undertaking of the assessee is wind mill power generation/hosiery goods, etc., and it has claimed the benefit of deduction under Section 80IA of the Income Tax Act for the assessment year in question and for the subsequent years as well. Having exercised its option and its losses have been set off already against other income of the business enterprise, the assessee in this appeal falls within the parameters of Section 80IA of the Income Tax Act. There appears to be no distinction on facts in relation to the decision reported in Velayudhaswamy Spinning Mills case (2010 (3) TMI 860 - Madras High Court). - Decided in favour of the assessee

Summary

Issues:
Appeals filed by Revenue against orders of CIT(A) for assessment years 2010-11 and 2011-12 regarding deduction under section 80IA.

Analysis:
1. The assessee, engaged in steel castings manufacture, initially declared income of Rs. 21,01,36,650, later revised to Rs. 20,04,95,980 with a deduction claim of Rs. 96,40,665 under section 80IA.
2. AO disallowed the deduction citing a pending SLP challenging a High Court decision.
3. CIT(A) allowed the deduction based on the Velayudhasamy Spinning Mills case.
4. Revenue appealed to the Tribunal, with DR supporting AO's order and assessee's counsel citing the High Court's decision.
5. The main issue was the eligibility of the assessee for the deduction under section 80IA.
6. The High Court's decision highlighted the conditions and provisions of section 80IA, emphasizing the deduction for eligible businesses.
7. The Tribunal found no grounds to overturn the High Court's decision, as the Revenue failed to present any contrary judgments.
8. The Tribunal upheld CIT(A)'s order, dismissing Revenue's appeal for both assessment years.
9. For the assessment year 2011-12, the issue being similar, the Tribunal applied the same decision from 2010-11 to dismiss the appeal.
10. Consequently, both Revenue appeals were dismissed based on the High Court's interpretation of section 80IA.

This detailed analysis covers the issues involved in the legal judgment, focusing on the interpretation and application of section 80IA in the context of the assessee's deduction claim and the High Court's precedent.