2023 (2) TMI 1190 - AT - Income Tax

Tribunal Upholds Deduction Under Section 80IB(10)

The Tribunal upheld the decision of the Commissioner of Income Tax (Appeals) to allow the deduction under Section 80IB(10) for the profit earned from the ... Deduction u/s 80IB(10) - profit earned by the assessee from the construction of project - HELD THAT:- We find no infirmity in the order passed by the Ld. CIT(A) in deleting such addition made by the Ld. AO following the decision taken by his predecessor in the earlier year in allowing the deduction u/s. 80IA(10) of the Act taking in consideration of the judgment passed by the Co-ordinate Bench - Hence the same is confirmed. Revenue’s appeal is found to be devoid of any merit and thus dismissed. Issues:Deduction under Section 80IB(10) of the Income Tax Act for profit earned from a construction project.Analysis:The judgment by the Appellate Tribunal ITAT Rajkot involved an appeal by the Revenue against an order related to the deduction under Section 80IB(10) of the Income Tax Act for a profit earned by the assessee from a construction project. The appeal was directed against the order passed by the Commissioner of Income Tax (Appeals) arising from the assessment order for the Assessment Year 2009-10. During the hearing, the counsel for the assessee pointed out that a similar issue had been decided in favor of the assessee for the Assessment Year 2011-12 by a Co-ordinate Bench of the Tribunal. The Revenue failed to provide any counter arguments. The Tribunal considered the earlier judgment and found no error or infirmity in the findings of the Commissioner of Income Tax (Appeals) for allowing the deduction under Section 80IB(10). The Tribunal confirmed the decision of the Commissioner of Income Tax (Appeals) and dismissed the Revenue's appeal, deeming it devoid of merit. The order was pronounced on 14/02/2023.In conclusion, the Tribunal upheld the decision of the Commissioner of Income Tax (Appeals) to allow the deduction under Section 80IB(10) for the profit earned from the construction project. The Tribunal based its decision on a previous judgment by a Co-ordinate Bench of the Tribunal, which found no error in the Commissioner's decision. The Tribunal dismissed the Revenue's appeal, confirming the allowance of the deduction and deeming the appeal to be lacking in merit.