ITAT Upholds CIT(A)'s Orders Dismissing Assessee's Appeals on Reassessment & Deduction Denial

The ITAT confirmed the CIT(A)'s orders and dismissed all appeals by the assessee for the relevant assessment years. The reassessment without issuing a statutory notice under section 143(2) was upheld, and the denial of deduction under section 80IB for cash assistance received from Government schemes was maintained. Legal precedents supporting the treatment of DEPB credits as business income were considered but deemed insufficient to demonstrate eligibility for deduction under section 80IB. The appeals were dismissed based on the interpretation of relevant provisions and precedents, leading to the rejection of the assessee's claims.

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Issues Involved:
Appeal against common order dated 27/01/2016 passed by CIT(A)-III, Jaipur for A.Ys. 2006-07, 2007-08, 2010-11 & 2012-13. Interpretation of legality of reassessment under section 143(3)/148 of IT Act without issuing statutory notice under section 143(2). Claim of deduction under section 80IB of IT Act for cash assistance received from Government of India under DEPB and VKGUY schemes. Application of judgments by Hon'ble Supreme Court and ITAT regarding treatment of DEPB credits as business income. Dismissal of appeals by CIT(A) and confirmation of orders.

Detailed Analysis:

Issue 1: Legality of Reassessment
The appeals raised common issues regarding the legality of reassessment under section 143(3)/148 of the IT Act without issuing the statutory notice required under section 143(2). The assessee contended that the CIT(A) erred in ignoring the legal grounds of appeal related to the reassessment. However, during the hearing, the assessee chose not to press certain grounds, leading to their dismissal.

Issue 2: Claim of Deduction Under Section 80IB
The main contention revolved around the denial of deduction under section 80IB of the IT Act by the Assessing Officer, which was upheld by the CIT(A). The assessee argued that the cash assistance received from the Government of India under DEPB and VKGUY schemes should be eligible for deduction under section 80IB. The assessee relied on provisions of Section 28(iiib) and 28(iiid) of the Act, along with judgments by the Hon'ble Supreme Court and ITAT supporting the treatment of such receipts as business income.

Issue 3: Application of Legal Precedents
The assessee cited various judgments by the Hon'ble Supreme Court and ITAT to support their claim that DEPB credits should be considered as business income eligible for deduction under section 80IB. However, the Senior DR opposed these submissions, asserting that the provisions of section 80IB require the profits claimed for deduction to be derived from the eligible business, which, in this case, was not demonstrated by the assessee.

Judgment and Dismissal of Appeals
After considering the arguments from both parties and reviewing the relevant provisions and legal precedents, the ITAT confirmed the orders of the CIT(A) and dismissed all appeals of the assessee for the relevant assessment years. The ITAT found no reason to interfere with the CIT(A)'s decision, based on the interpretation of the provisions of section 80IB and the treatment of DEPB credits as incentives rather than profits derived from the eligible business. The consistent view was taken across all appeals, leading to the rejection of the grounds raised by the assessee and the ultimate dismissal of the appeals.

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