Deduction under section 80IA(4)(iii) not dependent on CBDT notification date despite missing Rule 18(C)(4) compliance

The ITAT Bangalore dismissed the revenue's appeal regarding deduction under section 80IA(4)(iii). The assessee failed to submit the mandatory CBDT notification required under Rule 18(C)(4) of I.T. Rules. However, the Tribunal followed its earlier decision in the assessee's case for AY 2007-08, holding that deduction under section 80IA(4)(iii) is not dependent on the date of CBDT notification. The Tribunal relied on Creative Infocity Ltd. precedent and consistently applied this principle across multiple assessment years 2009-10 to 2011-12, finding no merit in the revenue's appeal.

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Issues:
Appeal against CIT(Appeals) order for AY 2014-15 - Claim of deduction u/s. 80IA(4)(iii) - Compliance with CBDT notification requirement.

Analysis:
The appeal by the revenue was against the CIT(Appeals) order concerning the deduction claimed by the assessee u/s. 80IA(4)(iii) for AY 2014-15. The assessee, a company, claimed a deduction for operating an industrial technology park on land allotted by KIADB. The AO rejected the claim citing prior rejections for AYs 2007-08 & 2008-09. However, the CIT(Appeals) allowed the claim after noting that the ITAT had approved similar claims for the earlier years. The ITAT found that the assessee had fulfilled the conditions for the deduction, as per the approval from the Ministry of Commerce and Industry, and the CBDT notification issued later did not affect the eligibility. The ITAT relied on the decision in Creative Infocity Ltd case, stating that once approval is granted, the CBDT notification is a formality. The Tribunal dismissed the revenue's appeal, citing its previous decisions and the Gujarat High Court ruling. The deduction u/s. 80IA(4)(iii) was held to be applicable from the date of approval by the Ministry, not the CBDT notification date.

In conclusion, the ITAT upheld the CIT(Appeals) decision, allowing the deduction claimed by the assessee u/s. 80IA(4)(iii) for AY 2014-15. The Tribunal emphasized that compliance with the Ministry's approval conditions sufficed for eligibility, irrespective of the CBDT notification date. The Gujarat High Court ruling and the ITAT's previous decisions were pivotal in determining the eligibility for the deduction, leading to the dismissal of the revenue's appeal.

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