Appeal dismissed, deduction upheld for Wind Mill Power project under Section 80IA, disallowance issue not entertained.

The appeal challenging the Income Tax Appellate Tribunal's order for Assessment Year 2006-07 was dismissed. The Tribunal's decision to allow deduction under Section 80IA for a Wind Mill Power project was upheld, as it followed precedents from earlier years accepted by the Revenue. The issue of disallowance under Section 14A was not entertained, as it did not raise substantial questions of law. The Tribunal's order was maintained, and no costs were awarded.

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Issues:
- Challenge to order of the Income Tax Appellate Tribunal for Assessment Year 2006-07.
- Deduction under Section 80IA of the Income Tax Act, 1961.
- Disallowance under Section 14A of the Income Tax Act, 1961.

Analysis:

Issue 1: Challenge to Tribunal's Order
The appellant challenged the order dated 28th August, 2013 passed by the Income Tax Appellate Tribunal (the Tribunal) for Assessment Year 2006-07 under Section 260A of the Income Tax Act, 1961. The questions of law raised by the Revenue pertained to the deduction under Section 80IA and the restoration of the issue of disallowance under Section 14A back to the Assessing Officer. The Tribunal's order extended the benefit of deduction under Section 80IA in relation to the Wind Mill Power project to the extent of Rs. 30.83 lakhs. The Revenue disputed this deduction, but it was noted that the fact situation in earlier Assessment Years was similar and had been accepted by the Revenue. As there were no distinguishing features in the subject assessment year, the Tribunal's order was upheld as it followed its earlier accepted orders.

Issue 2: Deduction under Section 80IA
Regarding the deduction under Section 80IA, the Tribunal's order was based on precedents from earlier Assessment Years where similar deductions were allowed and accepted by the Revenue. The appellant failed to provide evidence of appeals against the Tribunal's orders for the relevant years. As the Revenue had accepted the deductions in previous years with identical fact situations, the Tribunal's decision to allow the deduction in the present case was upheld.

Issue 3: Disallowance under Section 14A
The issue of disallowance under Section 14A was also raised, with the Tribunal restoring the matter back to the Assessing Officer for fresh adjudication. However, the counsel for the Revenue acknowledged that a similar issue had been decided against the Revenue in a previous case. The decision in Godrej and Boyce Manufacturing Co. Ltd. vs. Dy. Commissioner of Income Tax was cited as precedent. Consequently, the question of disallowance under Section 14A was not entertained as it did not give rise to any substantial question of law.

In conclusion, the appeal was dismissed, and no costs were awarded. The Tribunal's order was upheld, and the issues raised by the Revenue did not present substantial questions of law warranting further consideration.

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