2020 (10) TMI 886 - HC - Income Tax

Entitlement to claim deduction u/s.80IA - old unit situated at Tumkur, manufacturing electrical cables - Whether the assessee is entitled to claim deduction u/s.80IA of the Act, in respect of old unit situated at Tumkur, manufacturing electrical cables, which claim was not considered by taking into account the entire evidence recorded by the AO? - HELD THAT - The aforesaid substantial questions of law which are involved in this appeal have already been answered in favour of the revenue by a Bench of this Court M/S. DEEPAK CABLES (INDIA) LTD. 2014 (6) TMI 1045 - KARNATAKA HIGH COURT - Decided against assessee.

Summary

Issues:
1. Interpretation of Section 80IA of the Income Tax Act, 1961 regarding deduction for old manufacturing unit.
2. Consideration of material detected during survey for assessment year 2001-02.
3. Validity of revised return withdrawal impacting assessment order.

Analysis:
1. The appeal under Section 260-A of the Income Tax Act, 1961 pertained to the Assessment Year 2004-05 and focused on the interpretation of Section 80IA of the Act. The substantial questions of law raised included whether the Appellate Authorities erred in not considering the material detected during a survey in 2004, which indicated that the manufacturing unit had commenced operations 20 years earlier. This issue was further supported by statements recorded under section 131 of the Act and the withdrawal of claim under section 80IA by the assessee. The court examined whether the old unit manufacturing electrical cables was eligible for deduction under section 80IA, emphasizing the importance of assessing all evidence presented by the Assessing Officer.

2. The court considered the relevance of the findings regarding the revised return being withdrawn and its impact on the assessment order. The appellant argued that the substantial questions of law had already been addressed in a previous order dated 03.06.2014 in a different case (ITA No.205/2008), where the court ruled in favor of the revenue. Consequently, the court in the present case upheld the previous decision and answered the substantial questions of law in favor of the revenue. As a result, the order of the Income Tax Appellate Tribunal was quashed, and the order of the Assessing Authority was reinstated, leading to the disposal of the appeal.

3. The judgment by the High Court, delivered by Mr. Justice Alok Aradhe and Mr. Justice H.T. Narendra Prasad, reaffirmed the importance of thorough consideration of evidence and legal provisions in determining the eligibility for deductions under the Income Tax Act. The decision highlighted the significance of previous court rulings in guiding the interpretation and application of tax laws, ensuring consistency and adherence to legal principles in tax assessments and appeals.