TMI Blog2011 (4) TMI 785X X X X Extracts X X X X X X X X Extracts X X X X ..... ance u/s 43B - Regard to non-deposit of employees' contribution towards GPF was not pressed for by the learned counsel for the assessee - Hence, the same stands dismissed. - ITA No. 770/Del/2006 - - - Dated:- 21-4-2011 - C.L. Sethi, K.D. Ranjan, JJ, Ved Jain and V. Mohan, CAs., for the Appellant Shyama S. Bansia, CIT-DR, for the Respondent ORDER C.L. Sethi: The assessee is in appeal against the order dated 30.12.2005 passed by learned CIT(A) in the matter of assessment made u/s 143(3) dated 21.2.2005 by the AO for the AY 2004-05. 2. In this case, the Committee on Disputes has permitted the assessee to pursue the issue regarding disallowance of claim u/s 80IA and additions made u/s 43B for employees' contr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder in the light of the fact that ITAT in earlier years dismissed the assessee's appeal on this issue. The learned CIT(A) further observed that ITAT Delhi Bench 'B' had even rejected the assessee's claim for the AY 2001-02. The learned CIT(A) reproduced para 5 of the Tribunal's order dated 11.10.2004 for the AY 2001-02. The CIT(A), therefore, dismissed the assessee's ground. 7. Hence, the assessee is in further appeal before us. 8. In the course of hearing of this appeal, the learned counsel for the assessee has submitted that in AY 1998-99, 1999-2000, 2000-01 and 2005-06, the Tribunal set aside the issue relating to the claim of deduction u/s 80IA for fresh adjudication by the AO vide order dated 3.2.2006. The learned counsel for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o more applicable in the AY 2004-05 and thus, the necessary instructions and directions may be given to the AO to decide the matter as per law. 10. In reply, the learned counsel for the assessee has submitted that the provisions contained in old provision of Section 80IA(4C) are now incorporated in 80IA, sub-section (4) clause (ii) and, therefore, the assessee is entitled to deduction u/s 80IA(4)(ii) in the light of the Tribunal's earlier order. 11. We have heard both the parties and perused the material on record. We have perused the Tribunal's order dated 11.3.2010 pertaining to the AY 1998-99, 1999-2000, 2000-01, 2001-02 and 2005-06. In those years, the matter was re-examined by the AO after the matter being restored by the Tribu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t on the basis of amount invested in plant and machinery in the form of telephone exchanges. Therefore, the profit accruing from telecommunication services is required to be taken into account while granting claim of deduction u/s 80IA. In this regard, we found that after 1995, there is a complete revolution in telecommunication industry and old exchanges if any had been totally revamped. It was not merely addition of the new exchanges but there was entire change in the set up, technology, instruments and equipments. The exchanges which were earlier operating on old technology whereby there was use of big cross bar exchanges with large telephone instruments of dialing numbers mechanically by rotating the dial. Since this technology has been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the possibilities opened up by automatic self operated exchanges. This was not a change or modification but introduction of totally different facilities. It has inducted de novo systems and technology in place of outmode and antiquated system and technology. In view of the above discussion, it is crystal clear that merely on the basis of attributing the income in the ratio of telephone exchanges not proper, but we have to see the various services rendered by MTNL after 1995 which were actually generating income. Since the deduction is to be allowed in respect of income generated by all these facilities, we are required to compute deduction as per these host of services being rendered by MTNL. The lower authorities have also nowhere declined ..... X X X X Extracts X X X X X X X X Extracts X X X X
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