2008 (11) TMI 18 - HC - Income Tax

Appeal dismissed; taxpayer entitled to deductions under section 10A as Form 56F under Rule 16D was filed

HC upheld that the assessee was entitled to deductions under section 10A, noting Form 56F (Rule 16D) had been filed and admitted in the first round. The ... Allowability of deduction u/s 10A - assessee filed Form 56 F which is required to be filed under Rule 16D - HELD THAT:- Commissioner of Income-tax (Appeals) considered the matter and found that the assessee was entitled to the deductions claimed by it u/s 10A of the Act. In the second round before the Tribunal, the issues which had been settled in the first round were sought to be re-agitated. In this regard, the Tribunal noted that it had entertained the fresh ground claiming 100 per cent deductions u/s 10A of the said Act and had remitted the matter to the Commissioner of Income-tax (Appeals) for adjudication. Consequently, the Tribunal held that the revenue could not re-agitate the issue after the Tribunal had already decided the same in the first round. The Tribunal also noted that there is no dispute that the entire material was available on record and Form No. 56 F which had been filed, in the first round, had been admitted before the Commissioner of Income-tax (Appeals). Consequently, the Tribunal was of the view that the revenue, having accepted the order of the Tribunal in the first round, cannot raise those objections in the second round. Appeal is dismissed. Issues:Allowability of deduction under Section 10A of the Income Tax Act, 1961 without raising the claim before the Assessing Officer.Analysis:The appeal was against the Income Tax Appellate Tribunal's order regarding the allowability of deduction under Section 10A of the Income Tax Act, 1961 for the assessment year 2001-02. The respondent had not initially made a claim under Section 10A before the Assessing Officer but later claimed it before the Commissioner of Income-tax (Appeals). The Tribunal held that the submission of Form 56F, required for claiming deduction under Section 10A, was acceptable even though it was not filed along with the return. The Tribunal found that all conditions of Section 10A were satisfied, and the Commissioner of Income-tax (Appeals) should have entertained and decided on the merits of the deduction claimed by the assessee under Section 10A.In the first round before the Tribunal, it was established that the revenue did not dispute the satisfaction of conditions under Section 10A. The Tribunal criticized the Commissioner of Income-tax (Appeals) for not admitting the claim of the assessee on technical grounds, despite all relevant material being available and examined by the Assessing Officer. Consequently, the Tribunal set aside the earlier order and remitted the matter back to the Commissioner of Income-tax (Appeals) for a proper decision on the deductions claimed under Section 10A.In the subsequent round before the Tribunal, the Commissioner of Income-tax (Appeals) confirmed that the assessee was entitled to the deductions under Section 10A. The Tribunal noted that the revenue could not re-agitate the issue as it had already been decided in the first round. The Tribunal emphasized that all necessary material was on record, and the objections raised by the revenue were not valid after accepting the Tribunal's earlier decision. Therefore, the Tribunal upheld its previous decision and dismissed the appeal, stating that no question of law arose for consideration.In conclusion, the High Court upheld the Tribunal's order, finding no error in its decision. The appeal was dismissed, and no legal question was identified for further consideration.