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of <h1>Tribunal upholds deductions for LPG plant profits and donation claim</h1> <h3>Dy. Commissioner of Income Tax Circle–2 (1) Mumbai Versus Bharat Petroleum Corporation Ltd.</h3> Dy. Commissioner of Income Tax Circle–2 (1) Mumbai Versus Bharat Petroleum Corporation Ltd. - TMI Issues involved:1. Appeal by Revenue challenging orders for assessment years 2007-08 and 2008-09 under section 143(3) of the Income Tax Act, 1961.2. Claim of deduction under section 80IB for LPG plants.3. Direction to consider claim under section 80G for donation to an institution.Analysis:Issue 1: Appeal by Revenue for assessment years 2007-08 and 2008-09The Revenue filed appeals challenging the orders for assessment years 2007-08 and 2008-09 passed by the Commissioner (Appeals)-IV, Mumbai, under section 143(3) of the Income Tax Act, 1961. Both appeals pertained to the same assessee and common issues, thus were heard together. The grounds raised by the Revenue included challenges to the orders passed by the Commissioner (Appeals) for both assessment years.Issue 2: Claim of deduction under section 80IB for LPG plantsThe primary issue revolved around the claim of deduction under section 80IB amounting to Rs. 1,45,84,376 for profits from LPG plants. The Assessing Officer initially denied the deduction, arguing that filling gas into cylinders does not constitute manufacturing and that LPG bottling plants are part of refining activities. However, the Commissioner (Appeals) allowed the claim based on decisions by the Tribunal and the High Court, holding that bottling of gas cylinders qualifies as production activity eligible for deduction under section 80IB. The Tribunal affirmed the Commissioner's order citing the High Court's decision, dismissing the Revenue's appeal on this ground.Issue 3: Direction to consider claim under section 80G for donationAnother issue was the direction by the Commissioner (Appeals) to the Assessing Officer to consider the assessee's claim under section 80G for a donation of Rs. 1.57 crores to an institution. The Assessing Officer had rejected the claim due to lack of evidence. The Commissioner (Appeals) directed the assessee to provide necessary documents for the claim under section 80G. The Revenue contested this direction, arguing that the issue should not have been sent back to the Assessing Officer. However, the Tribunal found no violation of the law in the Commissioner's direction and dismissed the Revenue's appeal on this ground.In conclusion, the Tribunal dismissed the Revenue's appeals for both assessment years 2007-08 and 2008-09, upholding the orders passed by the Commissioner (Appeals) regarding the deduction under section 80IB and the direction to consider the claim under section 80G.
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