2018 (4) TMI 556 - AT - Income Tax

Tribunal affirms deduction under Section 80IB(5) for A.Y. 2012-13, dismissing Revenue's appeal.

ACIT - 30 (1), Mumbai Versus M/s. Ester Lub Technologies

The Tribunal upheld the CIT(A)'s order, affirming the allowance of the deduction under Section 80IB(5) to the assessee for A.Y. 2012-13. The Tribunal ... Disallowing deduction u/s 80IB(5) - addition based on the assessment made for A.Y. 2011-12 wherein similar disallowance was made by the AO - Held that:- On appeal the learned CIT(A), following the order of his predecessor for assessment years 2010-11 and 2011-12 allowed the claim of the assessee. On a perusal of the order of the Tribunal for assessment years 2010-11 and 2011-2 we find that the Tribunal allowed the claim of the assessee - we uphold the order of the learned CIT(A) in allowing the claim for deduction under Section 80IB(5) of the Act to the assessee. - Decided in favour of assessee. Issues:- Appeal against CIT(A)'s order for A.Y. 2012-13 denying deduction under Section 80IB(5) of the Income Tax Act, 1961.Analysis:- The Revenue appealed against the CIT(A)'s order, contending that the deduction under Section 80IB(5) was wrongly denied.- The assessee argued that the issue was covered by a previous decision in their favor for assessment years 2010-11 and 2011-12.- The Tribunal had consistently held that the assessee was entitled to the deduction under Section 80IB for income earned through job work for its sister concern.- The AO had disallowed the deduction based on the premise of reconstruction of an existing business, which the assessee refuted by highlighting the establishment of a new unit with no reconstruction involved.- The Coordinate Bench had previously ruled in favor of the assessee for assessment years 2010-11 and 2011-12, allowing the deduction under Section 80IB.- The D.R. supported the AO's order, leading to a hearing where the Tribunal examined the arguments and previous orders.- The Tribunal noted that the CIT(A) had allowed the claim based on the previous decision for A.Y. 2007-08, where the Tribunal had already allowed the claim of the assessee.- Since there were no changes in the facts and circumstances, the Tribunal upheld the CIT(A)'s order, dismissing the Revenue's appeal.- The Tribunal pronounced the order on 21st February 2018, affirming the allowance of the deduction under Section 80IB(5) to the assessee for A.Y. 2012-13.