2018 (7) TMI 2169 - AT - Income Tax

Eligibility for claiming deduction u/s. 80IA(4) - HELD THAT - From the documents on record we observe that the issue of assessee s eligibility for claiming deduction u/s. 80IA(4) has cropped up year after year since assessment year 2003-04. The Tribunal for the first time for assessment year 2003-04 by placing reliance on the decision of Hon ble Bombay High Court in the case of Commissioner of Income Tax Vs. ABG Heavy Industries Ltd. 2010 (2) TMI 108 - BOMBAY HIGH COURT held the assessee eligible for claiming deduction u/s. 80IA(4) of the Act. Thereafter the Tribunal in subsequent assessment years following the decision of Co-ordinate Bench in assessee s own case 2012 (2) TMI 524 - ITAT PUNE has been allowing benefit of deduction u/s. 80IA(4) of the Act to the assessee. The facts in the assessment year under appeal are identical. We do not find any reason to interfere with the findings of Commissioner of Income Tax (Appeals) in following the order of Tribunal in assessee s own case and to allow assessee s claim of deduction u/s. 80IA(4) of the Act. Accordingly grounds raised by the Revenue in appeal are dismissed being devoid of any merit. Appeal of Revenue is dismissed.

Summary

Issues:
1. Eligibility of the assessee for claiming deduction u/s. 80IA(4) of the Income Tax Act, 1961.

Analysis:
The appeal by the Revenue challenged the order of the Commissioner of Income Tax (Appeals) allowing the assessee's claim of deduction u/s. 80IA(4) for the assessment year 2013-14. The Revenue raised grounds questioning the eligibility of the assessee for such deduction as a contractor and whether the assessee, despite being termed as a contractor, was entitled to the deduction under sub-section (4) of section 80IA. The Tribunal had previously decided in favor of the assessee for assessment years 2004-05 to 2012-13 and held the assessee eligible for the deduction based on various precedents and judgments. The Commissioner of Income Tax (Appeals) also supported the assessee's eligibility based on previous tribunal decisions and the judgment of the Hon'ble Bombay High Court.

The issue of the assessee's eligibility for claiming deduction u/s. 80IA(4) had been recurring since assessment year 2003-04. The Tribunal's initial decision in 2003-04, based on the judgment of the Hon'ble Bombay High Court, deemed the assessee eligible for the deduction. Subsequently, the Tribunal consistently allowed the benefit of deduction u/s. 80IA(4) to the assessee for the following assessment years. The Revenue's appeal in the current case was solely against the allowance of the assessee's deduction claim. The Tribunal, after reviewing the orders of the authorities and considering the consistent decisions in favor of the assessee, found no reason to interfere with the Commissioner of Income Tax (Appeals) decision to allow the deduction. Consequently, the grounds raised by the Revenue were dismissed for lacking merit, and the appeal of the Revenue was ultimately dismissed.