2018 (1) TMI 780 - AT - Income Tax

Deduction u/s.80IA(4)(iii) rejected - profits and gains arising from Industrial Park - Held that - The requirement of granting deduction u/s.80IA(4)(iii) of the Act is approved in the assessee s own case. Therefore following the rule of consistency we allow the grounds raised by the assessee on this issue in both the A.Yrs. 2011-12 and 2012-13. See M/s Kolte Patil Developers Ltd Versus Dy. Commissioner of Income Tax 2015 (3) TMI 363 - ITAT PUNE

Summary

Issues: Allowability of claim of deduction u/s.80IA(4)(iii) of the Act for Assessment Years 2011-12 and 2012-13.

The Appellate Tribunal, ITAT Pune, considered 2 appeals filed by the assessee against separate orders of CIT(A)-11, Pune for the Assessment Years 2011-12 and 2012-13, with identical issues raised in both appeals. The Tribunal decided to club and adjudicate both appeals in a composite order. The main issue requiring adjudication was the allowability of the claim of deduction u/s.80IA(4)(iii) of the Act. The assessee's counsel clarified that other issues were either not pressed or of a general nature, and the Tribunal dismissed them accordingly.

The assessee, engaged in construction business, filed returns declaring total income for the relevant years. The dispute arose regarding the deduction claim under Industrial Park Scheme u/s.80IA(4)(iii). The AO disallowed the claim, citing non-compliance with scheme requirements. However, the CIT(A) upheld the AO's decision. The Tribunal noted that the issue was previously decided in favor of the assessee in earlier years, citing the order of the Tribunal in the assessee's own case for A.Yrs. 2009-10 and 2010-11. The Tribunal referred to the decision in M/s. Kolte Patil Developers Ltd. case, where a similar issue was decided in favor of the assessee. Relying on consistency and subsequent scheme approval, the Tribunal allowed the grounds raised by the assessee for both A.Yrs. 2011-12 and 2012-13, partially allowing the appeals.

In conclusion, the Appellate Tribunal, ITAT Pune, partially allowed both appeals filed by the assessee concerning the deduction claim under u/s.80IA(4)(iii) for the Assessment Years 2011-12 and 2012-13. The Tribunal's decision was based on the rule of consistency and the favorable precedent set in earlier cases, ultimately upholding the grounds raised by the assessee and dismissing those raised by the Revenue.