2010 (4) TMI 1232 - HC - Income Tax

High Court Corrects ITAT Error on Tax Relief: Sections 80IB(13) & 80IA(7) Violations

The High Court held that the ITAT erred in granting relief to the assessee by overlooking mandatory provisions of law under sections 80IB(13), 80IA(7), ... - Admitted on the following 'substantial questions of law': whether the ITAT erred in granting relief while overlooking and 'ignoring the mandatory provisions of law' in section 80IB(13), 80IA(7) and rule 18BBB; whether the Tribunal was justified in ignoring provisions requiring maintenance of separate books and filing of audit report for the 'eligible unit' and in granting relief beyond law; whether, where there is trading as well as a claim of certain portion as 'production', the Tribunal was justified in granting 80IB deduction on the total profit; whether an assessee engaged in trading of iron ore (and not in 'mining activity') can be treated as involved in 'production', contrary to the Apex Court in Sesa Goa Ltd.; whether principles of natural justice were violated by not calling for revised audit reports u/s 80IB; whether the unit was correctly held to be an SSI unit contrary to sec. 80IB(3)(ii) read with sec. 80IB 14(g); whether 'additional depreciation' under sec. 32(iia)(B) can be allowed without filing 'Form 3AA' and absent production; whether reliance on 208 ITR 481 (CIT v. N S Arunachalam) was warranted; whether a statutory report in 'Form 3AA' may be accepted in revisionary proceedings under sec. 263; and whether the appellate authorities perversely appreciated evidence warranting interference.