Deleting the addition made on account of deduction claimed under section 80IA(4) of the Income Tax Act, 1961

The Income Tax Appellate Tribunal (ITAT) Ahmedabad has dismissed an appeal by the Revenue, allowing Chiripal Industries Ltd.'s claim for deduction under Section 80IA(4) of the Income Tax Act, 1961. The Assessing Officer had sought to delete the addition made on account of this deduction. However, the Tribunal noted that similar claims for earlier years, on identical facts, had been allowed by the Tribunal and the CIT(A). Therefore, following its previous consistent view, the appeal was dismissed.

IN THE INCOME TAX APPELLATE TRIBUNAL
AHMEDABAD – BENCH ‘A’
BEFORE SHRI RAJPAL YADAV, VICE-PRESIDENT
AND
SHRI WASEEM AHMED, ACCOUNTANT MEMBER

ITA No.45 /Ahd/2019
Asstt.Year : 2010-11

DCIT, Cir.1(1)(2)
Ahmedabad.

vs

M/s.Chiripal Industries Ltd.
2nd Floor, Chiripal House
Shivranjani Cross Road
Satellite
Ahmedabad 380051.
PAN : AAACC 8513 B

Revenue by : Shri S.S. Shukla, Sr.DR
Assessee by : Shri Gaurav Nahata, AR

Date of Hearing : 10/09/2021

Date of Pronouncement : 15/09/2021

O R D E R

It has filed return of income on 14.10.2010 declaring total income at Rs.14,81,15,160/- after claiming deduction of Rs.2,74,36,139/- under section 80IA of the Act. The assessment was completed under section 143(3) of the Act on 25.3.2013 and determined total income at Rs.15,65,84,722/-. Thereafter, case of the assessee was selected for scrutiny assessment by issuing of notice under section 148 of the Act on 29.3.2017. From the details submitted by the assessee, the ld.AO observed that the assessee has shown total value of the machinery and plant used for its activity at Rs.766.64 lakhs, of which Rs.711.23 lakhs was of old plant & machinery belonged to erstwhile concern i.e. Shanti Processor Ltd. installed prior to 01.04.2005.

2. He further submitted that continuously for the last four years, similar claim has been agitated before the ld.first appellate authority and before the Tribunal, and the claim of deduction under section 80IA has been allowed to the assessee. In this year also, claim is similar, facts are identical and therefore there is no reason to deviate from the view taken by the Tribunal on the issue on hand. The ld.CIT(A) has rightly appreciated the factum of earlier years’ claim and allowed the claim of the assessee on the basis of the Tribunal’s order passed in the assessee’s case.

3.After going through order of the ld.CIT(A) and the Tribunal, we find that the impugned issue is no more remain res integra with the Tribunal, because, the Tribunal on identical set of facts for the earlier years cited (supra) had allowed claim of the assessee. The Tribunal has discussed the issue at length both on facts and in law.

4. In the result, appeal of the Revenue is dismissed.
Pronounced in the Open Court on 15th September, 2021.

Please find attached the enclosed file for the full judgement