2010 (8) TMI 1029

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....ing the facts that as per the annual report for AYr. 2004-05 of M/s Komet Wire Industries Pvt. Ltd., it has completed its 12th year and in view of the provisions of section 80IB, the deduction cannot be claimed af ter 10th year. 2. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in allowing the deduction be claimed with the initial assessment year as def ined in Section 80IB (14)(c) of the Act, however, the assessee had claimed it subsequently. Hence, the assessee is not eligible." 3. The assessee company is a dealer and manufacturer of cables. It claimed deduction u/s 80IB of ₹ 62,07,153/-, which was not allowed by the AO for the following reasons:- a) That M/s Komet Wire Industries Pvt. Ltd., a....

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....emerged company for the previous year in which the amalgamation or the demerger takes place; and b) the provisions of this section shall, as far as may be, apply to the amalgamated or the resulting company as they would have applied to the amalgamating or the demerged company if the amalgamation or demerger had not taken place." 4.3 The summary of the sub-section is, the amalgamating company i.e. M/s Komet Wire Industries Pvt. Ltd. will not be entitled to deduction under 80IB whereas the resulting company i.e. M/s Rishabhdev Technocable Ltd. would be entitled to 80IB deduction af ter the merger. In the case of merger, the allowability of deduction u/s 80IB is covered by provisions of sub-section 12 of 80IB and not by the provisions of 80I....

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....y in the order of the CIT(A) in directing the AO to allow the claim of deduction of the assessee of ₹ 62,07,153/- u/s 80IB of the Act. Therefore, we confirm the order of CIT(A) on this issue. 8. Ground No.3 reads as under:- " On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in allowing the deduction u/s 80IB of the Act without verifying the fact that the assessee had not furnished Form No. 10CCB along with return of income, which is mandatory on the part of the assessee as well as the assessee had not submitted Form No. 10CCB even during the course of assessment proceedings. For claiming deduction u/s 80IB of the Act, 1961." 9. One of the reasons for disallowing deduction of claim of assessee u/s 8....