2011 (11) TMI 676 - AT - Income Tax

Claim for relief u/s 80IA - Held that - After getting approval of the Pollution Control Board the TNEB vide its order dated 17.10.2001 had accepted the assessee as the infrastructure provider and reiterated the same vide their letter dated 25.9.2006. Accordingly the assessee had set up infrastructure facilities as required u/s 80IA. - Decided in favour of assessee

Summary

Issues:
Appeals by Revenue against CIT(A)'s order disallowing deduction u/s 80IA for assessment years 2007-08 and 2008-09.

Detailed Analysis:

1. Facts of the Case:
The assessee, a company registered under the Companies Act, filed returns of income for assessment years 2007-08 and 2008-09. The Assessing Officer disallowed the claim for deduction u/s 80IA of the Act related to the construction of a power generating facility and infrastructure work.

2. Dispute on Eligibility for Deduction:
The Assessing Officer contended that the assessee did not meet the requirements of sub-section (4) of section 80IA as there was no agreement with the Central or State Government, Local Authority, or any Statutory Body for developing, operating, or maintaining a new infrastructure facility. The assessee's agreement with another company was deemed insufficient.

3. CIT(A)'s Decision and Tribunal's Precedent:
The CIT(A) allowed the claim based on the ITAT Chennai Bench's order in the assessee's case for assessment year 2004-05, where a similar claim was accepted. The Tribunal had also ruled in favor of the assessee for assessment years 2005-06 and 2006-07. The ld.AR highlighted that the issue was already settled by the Tribunal in the assessee's favor.

4. Judgment and Dismissal of Appeals:
The Tribunal noted that the grounds of appeal in the current assessment years were the same as in the previous year, where the Tribunal had ruled in favor of the assessee. As a result, the appeals by the Revenue were dismissed, upholding the CIT(A)'s decision to allow the deduction u/s 80IA.

In conclusion, the Tribunal upheld the CIT(A)'s decision to allow the deduction u/s 80IA for the assessment years 2007-08 and 2008-09, based on the precedent set in the assessee's earlier cases and the lack of substantial evidence to disqualify the claim.