ITAT upholds assessee's deduction under section 80IA(4) for AY 2014-15, dismissing Revenue's appeal.

The ITAT upheld the CIT(A)'s decision allowing the assessee's deduction u/s. 80IA(4) for the assessment year 2014-15. The Tribunal noted consistent favorable rulings in previous years and found no reason to overturn the decision. The appeal by the Revenue was dismissed due to identical facts and lack of contradictory orders. The ITAT affirmed the assessee's eligibility for the deduction, concluding in favor of the assessee and pronouncing judgment on 24th March 2021.

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Issues:
Whether the assessee is eligible for deduction u/s. 80IA(4) of the Act for the assessment year 2014-15Rs.

Analysis:
The appeal by the Revenue was against the order passed by the Commissioner of Income Tax (Appeals)-1, Kolhapur for the assessment year 2014-15. The only issue for consideration was the eligibility of the assessee for deduction u/s. 80IA(4) of the Act. The assessee claimed a deduction of &8377; 20,80,89,446 under sections 80IA(4)(i)(a)&(b) of the Act, stating it was available to any enterprise involved in developing, operating, and maintaining infrastructure facilities. The Assessing Officer (AO) considered the assessee as a works contractor primarily engaged in infrastructure construction. The AO disallowed the deduction based on an appeal pending before the Hon'ble High Court of Bombay and the explanation to section 80IA(4) of the Act. However, the CIT(A) held the assessee eligible for the deduction, considering the ITAT's order in the assessee's own case for previous assessment years.

The ITAT noted that the assessee had presented orders from previous years where the Tribunal had allowed the deduction u/s. 80IA(4) of the Act. The Tribunal observed that the issue of the assessee's eligibility for the deduction had been consistently decided in favor of the assessee in previous years. The ITAT found no reason to interfere with the CIT(A)'s decision to follow the Tribunal's orders in the assessee's own case for allowing the deduction u/s. 80IA(4) of the Act. The Revenue's grounds for appeal were dismissed as the facts remained identical to previous assessment years, and there was no contradictory order from the Revenue or the High Court of Bombay.

The ITAT concluded that the assessee was entitled to claim the deduction u/s. 80IA(4) of the Act for the assessment year 2014-15. The Tribunal found no infirmity in the CIT(A)'s order and upheld the decision, dismissing the appeal of the Revenue. The judgment was pronounced in the open court on 24th March 2021.

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