2022 (6) TMI 262 - AT - Income Tax

Deduction u/s 80-IA - disallowances made as appellant is carrying on the business of common effluent treatment plant only - HELD THAT - Undisputedly, the assessee s claim for deduction u/s 80IA of the Act qua the water treatment system plant commenced in June 2004. It is also not in dispute that assessee s claim qua deduction u/s 80IA of the Act for preceding years i.e. A.Y. 2006-07 to 2011-12 has not been entertained and as such the only inference can be drawn that present claim of the assessee for deduction under section 80IA of the Act has become the first year. We have perused the impugned order passed by the Ld. CIT(A) who has thrashed the facts in the light of the law applicable thereto. After perusing the agreement with Maharashtra Industrial Development Corporation (MIDC), the Ld. CIT(A) observed that the same is a document between Hydroair Tectonics and Patalganga and Rasayani Industries Association (PRIA) with MIDC. There is also one memorandum of understanding between Hydroair and assessee with MIDC as facilitator for setting up a joint venture company namely Pria Ganga Common Effluent Treatment Plant Ltd. When the assessee has failed to fulfill the basic and primary requirements of section 80IA(4) of the Act for its claim under section 80IA of the Act, present year being the first year of claiming a deduction as its earlier claims have already been declined, we find no illegality or perversity in the impugned order passed by the Ld. CIT(A). No new facts and evidences have been brought on record by the assessee who has also not preferred to put an appearance after filing present appeal way back in May 2018. Consequently, impugned order passed by the Ld. CIT(A) is hereby upheld and appeal filed by the assessee is dismissed.

Summary

Issues: Disallowance of deduction u/s 80-IA

In this case, the appellant, M/s. PRIA CETP (India) Ltd., sought to set aside the order passed by the Commissioner of Income Tax (Appeals) confirming the disallowance of deduction under section 80-IA amounting to Rs. 2,78,29,293 for the assessment year 2012-13. The Assessing Officer disallowed the deduction claimed by the assessee under section 80IA(3) of the Income Tax Act, 1961, and framed the assessment at a total income of Rs. 37,80,71,14. The assessee appealed to the Ld. CIT(A), who partly allowed the appeal. However, the assessee further appealed to the Tribunal, but despite notice, no one appeared on behalf of the company during the proceedings. The Tribunal decided the appeal based on the available record and the arguments presented by the Ld. Departmental Representative for the Revenue.

The Tribunal noted that the assessee's claim for deduction under section 80IA for the water treatment system plant started in June 2004. It was observed that the assessee's claims for deduction under section 80IA for the preceding years had not been accepted. The Tribunal analyzed the impugned order passed by the Ld. CIT(A) and found that the agreement with Maharashtra Industrial Development Corporation (MIDC) and the memorandum of understanding did not fulfill the basic requirements of section 80IA(4) of the Act for the claim under section 80IA. Since no new facts or evidence were presented by the assessee, and they did not appear before the Tribunal, the impugned order of the Ld. CIT(A) was upheld, and the appeal filed by the assessee was dismissed.