Appeal Dismissed: Reversionary Order Quashed, Section 80IA Deduction Upheld u/r of Consistency.

The Calcutta HC dismissed the revenue's appeal, upholding the ITAT's decision to quash the reversionary order under Section 263 of the Income Tax Act, 1961. The Court found no substantial questions of law, affirming the Tribunal's conclusion that the deduction claimed under Section 80IA was admissible, applying the Rule of Consistency.

---

---

Issues:
1. Jurisdiction under Section 263 of the Income Tax Act, 1961.

Detailed Analysis:
The High Court of Calcutta heard an appeal filed by the revenue against an order passed in ITA No. 427/Kol/2018 for the assessment year 2012-13. The main issues raised were whether the Income Tax Appellate Tribunal erred in quashing the reversionary order under section 263 and deleting the addition made on the basis of disallowance of claim of deduction u/s 80IA of the Act. Additionally, it was questioned whether the Assessing Officer applied correct assumption of fact and law on the deduction issue, making the assessment order erroneous. The Court considered the arguments presented by both sides and examined the order and reasons given by the Tribunal. The Tribunal had considered the factual contentions related to purchases made by the assessee and the terms of the agreement with the highways department, concluding that the deduction claimed was admissible based on previous decisions and legal principles set by the Supreme Court regarding the Commissioner's power under Section 263.

The Court noted that no disallowance had been made in the previous and subsequent assessment years, and in the absence of any distinguishing features in the contract, the Rule of Consistency had to be applied. Consequently, the Court found no substantial questions of law arising for consideration in the appeal. Therefore, the appeal was dismissed, and the order passed in favor of the respondent was upheld.

---