ITAT Upholds CIT(A)'s Decision, Dismisses Revenue's Appeal on Section 10B Disallowance for 2008-09 Granite Exports.

The ITAT dismissed the Revenue's appeal, affirming the CIT(A)'s decision to delete the disallowance/addition under Section 10B for the assessment year 2008-09. The Tribunal found no distinction between the facts of the current and previous years concerning the exported granite, thereby confirming the consistency in business activities and upholding the CIT(A)'s order.

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Issues involved: Appeal against order of Commissioner of Income-tax (Appeals) regarding disallowance/addition u/s 10B for assessment year 2008-09.

Summary:
The Revenue appealed against the Commissioner of Income-tax (Appeals) order for assessment year 2008-09, challenging the deletion of disallowance/addition u/s 10B amounting to Rs. 2,50,02,395. The Revenue argued that the CIT(A) erred in deleting the disallowance and should have upheld it. The assessee supported the CIT(A)'s decision, citing similarity in facts with a previous assessment year where deduction u/s 10B was allowed.

The assessee, a firm engaged in granite export, reported a loss in 2008. The Assessing Officer disallowed the deduction u/s 10B based on the nature of the exported granite, considering it unpolished and not meeting the criteria for "manufacture or production." This led to an addition in the assessee's total income.

The CIT(A) relied on a previous tribunal order for the assessment year 2007-08 and deleted the addition, leading to the Revenue's dissatisfaction. The Appellate Tribunal reviewed the case and noted that the Revenue failed to provide any distinction between the facts of the current and previous assessment years regarding the exported granite. Referring to the previous tribunal order, the Appellate Tribunal confirmed the CIT(A)'s decision to delete the disallowance, stating that the business activities remained consistent.

In conclusion, the Revenue's appeal was dismissed, upholding the CIT(A)'s decision to delete the disallowance/addition u/s 10B for the assessment year 2008-09.

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