Appeal partly allowed: Assessee wins on Sections 80IA. Delay condoned. Tribunal proceeds with main appeal.

The appeal was partly allowed, with Ground Nos. 4 to 6 decided in favor of the assessee, allowing losses only from the initial assessment year for deduction under Section 80IA. Ground Nos. 1, 2, 3, and 7 were dismissed. The delay in filing the appeal was condoned upon payment of a cost of Rs. 20,000. The Tribunal confirmed the payment and proceeded to hear the main appeal on merits.

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Issues Involved:
1. Delay in filing the appeal.
2. Ground No. 1: Dismissal as not pressed.
3. Ground Nos. 2 and 3: Deduction under Section 80IA(i) for Sales Tax benefit.
4. Ground Nos. 4 to 6: Amendment in sub-section (2) of Section 80IA.
5. Ground No. 7: General nature.

Detailed Analysis:

1. Delay in filing the appeal:
The appeal was filed with a delay of 2937 days. The Tribunal condoned the delay subject to the payment of a cost of Rs. 20,000, which the assessee paid on 16-01-2018. The Tribunal proceeded to hear the main appeal on merits after confirming the payment.

2. Ground No. 1: Dismissal as not pressed:
The assessee's representative, Shri Prayag Jha, stated that the assessee was not interested in prosecuting Ground No. 1 and prayed for its dismissal. Accordingly, Ground No. 1 was dismissed as not pressed.

3. Ground Nos. 2 and 3: Deduction under Section 80IA(i) for Sales Tax benefit:
The assessee challenged the CIT(A)'s decision confirming the AO's order that the Sales Tax benefit is not eligible for deduction under Section 80IA(i). The Tribunal noted that this issue was previously decided against the assessee in its own case for A.Y. 2003-04 and A.Ys. 2006-07 to 2008-09. The Tribunal reiterated that the Sales Tax benefit is not eligible for claiming deduction under Section 80IA(i) as it does not constitute eligible business income. Consequently, Ground Nos. 2 and 3 were dismissed.

4. Ground Nos. 4 to 6: Amendment in sub-section (2) of Section 80IA:
The assessee challenged the CIT(A)'s decision confirming the AO's order regarding the amendment in sub-section (2) of Section 80IA effective from 01-04-2000. The Tribunal referred to its consolidated order dated 10-04-2015 for A.Ys. 2004-05 & 2005-06, which held that losses adjusted against assessable income other than the profits of the industrial undertaking cannot be adjusted against the income in the year the assessee shows profits from the said undertaking. The Tribunal cited the decision in the case of Shri Sangram Patil vs. ITO and Serum International Ltd. vs. Addl. CIT, which supported the assessee's position. It was held that only losses from the initial assessment year chosen by the assessee for claiming deduction under Section 80IA should be considered, and not losses from earlier years already set off against other income. Therefore, Ground Nos. 4 to 6 were allowed in favor of the assessee.

5. Ground No. 7: General nature:
Ground No. 7 was deemed general in nature and did not require adjudication. Hence, it was dismissed.

Conclusion:
The appeal was partly allowed, with Ground Nos. 4 to 6 being decided in favor of the assessee, while Ground Nos. 1, 2, 3, and 7 were dismissed. The order was pronounced in the open court on 29th January, 2020.

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