Tribunal allows Revenue's appeal, overturns disallowance under section 10AA, citing inadvertent mistake.

The Tribunal partly allowed the Revenue's appeal for A.Y. 2008-09 for statistical purposes. The disallowance of deduction u/s 10AA was overturned, as the CIT (A) considered the mistake in claiming under section 10A as inadvertent and rectified during assessment proceedings. The Tribunal held that such a mistake should not disqualify a valid claim, leading to the dismissal of the Revenue's ground. All other appeals of the revenue and cross objections of the assessee were allowed for statistical purposes.

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Issues:
- Challenge to relief given by CIT (A) regarding bogus/unverifiable purchases
- Rejection of books of account under section 145(3) in A.Y. 2007-08
- Calculation issue under section 80HHC
- Disallowance of deduction u/s 10AA due to a mistake in claiming under section 10A

Analysis:

1. The appeals and cross objections were filed against orders of the CIT (A) for assessment years 2008-09, 2005-06, and 07-08. The Revenue challenged the part relief given by CIT (A) regarding bogus/unverifiable purchases, while the assessee raised objections against the rejection of books of account under section 145(3) in A.Y. 2007-08.

2. The counsel for the assessee argued that since the rejection of books of account was not challenged in A.Y. 2005-06 & 2008-09, it was not pressed in A.Y. 2007-08. The Departmental Representative (D/R) referred to a previous ITAT order regarding unverifiable purchases and urged the Tribunal to decide the appeals based on that order.

3. The parties agreed to set aside the issues related to unverifiable purchases and calculation under section 80HHC to be decided afresh by the Assessing Officer (AO) after a judgment from the Rajasthan High Court. Both parties requested the matter to be remanded for fresh consideration.

4. The sole remaining ground in Revenue's appeal for A.Y. 2008-09 was the disallowance of deduction u/s 10AA due to a mistake in claiming under section 10A. The AO initially disallowed the claim, but the CIT (A) allowed it, considering it an inadvertent mistake rectified during assessment proceedings.

5. The Tribunal upheld the CIT (A) order, stating that an inadvertent mistake in the claim form should not disentitle the assessee from a valid claim. The correction made by the assessee was considered, and the claim under section 10AA was allowed. Consequently, the ground of the revenue was dismissed.

6. In conclusion, the Revenue's appeal for A.Y. 2008-09 was partly allowed for statistical purposes, while all other appeals of the revenue and cross objections of the assessee were allowed for statistical purposes. The Tribunal's decision was pronounced on 17/07/2015.

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