High Court considers Section 80IB(10) deduction on pro rata basis, orders Tribunal record review

The High Court of Bombay admitted the appeals to consider the substantial question of law concerning the claim of deduction under Section 80IB(10) on a pro rata basis. The issue revolved around whether the Income Tax Appellate Tribunal was correct in directing the Assessing Officer to allow such deduction despite the absence of explicit provisions for proportionate deduction. The Court ordered the Registrar to retrieve the original record from the Tribunal for review and instructed the preparation of a comprehensive paper book in accordance with the Rules, with the assessee waiving service in this regard.

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Issues involved:
Claim of deduction under Section 80IB(10) on a pro rata basis.

Analysis:
The High Court of Bombay, comprising S.C. Dharmadhikari and A.K. Menon, JJ., heard the arguments from both sides in the case. The Court noted that all questions presented, except for the issue regarding the claim of deduction under Section 80IB(10) on a pro rata basis, had become irrelevant. The Court admitted the appeals based on the substantial question of law related to this specific issue. The question raised was whether the Income Tax Appellate Tribunal was correct in directing the Assessing Officer to allow the deduction under Section 80IB(10) on a pro rata basis, despite the provisions not explicitly allowing for proportionate deduction. The Court directed the Registrar to summon the original record from the Tribunal for inspection and ensured the preparation of a complete paper book in compliance with the Rules. The assessee waived the service in this matter.

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