TaxTMI 
TaxTMI 
2013 (11) TMI 308
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....cumstances of the case. 2. The learned CIT (A) erred in allowing the assessees appeal and in directing the Assessing Officer to allow the deduction claimed, u/s. 80IA, by the assessee. 3. The Commissioner of Income-tax (Appeals) erred in coming to the conclusion that the facts pertaining to the earlier assessment year 2004-05 are identical to the facts for the current assessment year 2005-06 and on this ground erred in allowing the claim of the assessee for assessment year 2005-06 by relying on the decision of the Income tax Appellate Tribunal for the Assessment year 2004-05. 4. The Commissioner of Income-tax (Appeals) ought to have considered the fact that the decision of the Income-tax Appellate Tribunal, for the assessment year 2004-0....
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....rs and frits for application in tiles and sanitary ware industries. The unit commenced its manufacture in August, 1995 relevant for the first assessment year 1996-97. 4. For the A.Y. 2005-06, the assessee filed its return of Income on 29. 10.2005 declaring a total income of Rs.8,43,29,703/-, which included a claim for deduction u/s.80-IA for a sum of Rs.2,83,72,567/-. The assessee had been claiming the deduction u/s.80-IA from the A.Y. 2001-02 onwards - i.e., the year in which the assessee had made profits from the manufacture of the above said undertaking. Prior to A.Y. 2001-02, it was incurring loss and consequently could not claim any deduction u/s.80-IA, though commencement of manufacture was from August, 1995. 5. Up to the Assessment....
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....ld be eligible to claim tax holiday in terms of Section 80IA(2) (iv)(c). Accordingly, the claim was made for deduction u/s 80IA and allowed for Asst. years 2000-01 onwards, in regular scrutiny assessments. However, the Gazette Notification was issued as late as in October 1997 vide No. S.O.714(E) dated 7-10- 1997, with retrospective effect from 1-10- 1994. Further, the Income Tax Amendment Act, 1998 amended section 80IA(2) (iv)(c) retrospectively with effect from 1-4-1998 to read as - (c) in the case of an industrial undertaking located in such industrially backward district as the Central Government may, having regard to the prescribed guidelines, by notification in the Official Gazette, specify in this behalf, as an industrially backward....
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....s to the promissory estoppel and the so called denial of benefit at a later date, fall flat on its own accord as explained below: S.No. Activity Date / Amount 1. The setting up of manufacturing unit August 1995 2. Omission of Schedule VIII from IT. Act. 1-4-1984 3. Introduction of S. 801A(2)(iv)(c) w.e.f 1-4-1995 4. Issue of notification of backward districts October 1997 5. Claim of deduction by assessee in the period AY 1995-96 to AY 1999-2000 Nil 6. First year of deduction of claim AY 2000-01 The claims of the assessee started only in AY 2000-2001, much after the actual districts entitled for the deduction were well known and clearly established. The issue of' promissory estoppel would come into play (even though as....
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....the CIT(Appeals) held that the assessee was entitled to deduction claimed. In this regard, the CIT(A) found that in the A.Y. 2004-05, the Tribunal in ITA No.24/Bang/2009 dated 09.04.2009 held that the assessee was entitled to benefit u/s. 80IA of the Act. Following the aforesaid order, the CIT(A) allowed the claim of the assessee. Aggrieved by the order of the CIT(A), the revenue has preferred the present appeal. 11. At the time of hearing, it was brought to our notice that the Tribunal in ITA No.784/Bang/2002 for the A.Y. 2003-04 had allowed similar claim of the assessee. The relevant observations of the Tribunal were brought to our notice, which are reproduced below:- 04. After hearing the learned DR and also going through the Commissio....