TaxTMI 
TaxTMI 
2022 (6) TMI 790
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....ied in allowing the assessee's claim of deduction u/s.80IA(4) of the I.T.Act, as the section 80IA does not provide deduction to assessees registered as "Firm" and instead should have confirmed the disallowance made in the assessment on this issue. 2. The appellant prays that the Order of the Ld.CIT(A) be held to be bad in law and quashed and that of the Assessing Officer be restored. The appellant prays to be allowed to add, amend, modify, rectify, delete or raise any grounds of appeal during the course of appellate proceedings. 2. In Cross Objection appeal, the Assessee raised the following grounds of appeal for the Assessment Year 2010-11: "1. The Assessee submits that the re-opening u/s 148 is bad in law and accordingly, the reasst. Order passed u/s 147 be declared null and void. 2. The assessee submits that the reopening is bad in law on account of the following reasons - a. The asst. u/s. 143(3) was completed and the reopening is beyond 4 years from the end of the relevant asst. Year and since all the material facts were duly submitted by the assessee in the course of original asst. Proceedings, the reopening is not valid since t....
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....oresaid 3 partners, there are no other non-corporate entities, who are partners. It is also a fact that the partnership firm came into existence on 11.04.2001 and the same partners continued in the year under consideration without any change in the constitution. It is a fact that according to provisions of Sec -. 80IA(4)(i)(a), the section applies to an enterprise which is a company registered in India or a consortium of companies or by an authority ir a board or a corporation or any other body established or constituted inder any Central or State Act. It is also a fact that the word "consortium" used in the provision has not been defined in the Income Tax Act. As per the Merriam Webster dictionary, the word "consortium" means fan agreement, combination, or group (as of companies) formed to undertake an enterprise beyond the resources of any one member". As per the Collins English Dictionary, a "Consortium" is a group of people or firms who have agreed to cooperate with each other". We find that the Hon'ble Madhya Pradesh High Court in the case of Org Informatics (supra) has observed that a consortium is akin to a partnership where each partner is liable for action of other par....
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.... being a partnership firm is concerned, it is an undisputed fact that the assessee is a partnership firm consisting of 3 companies namely Rohan Builders (India) Pvt. Ltd, Rajdeep Buildcon Pvt., Ltd and Rajdeep Road Developers Pvt., Ltd with a profit sharing ratio of 50:40:10 respectively. It is also a fact that in the case of assessee apart from the aforesaid 3 partners, there are no other non-corporate entities, who are partners. It is also a fact that the partnership firm came into existence on 11.04.2001 and the same partners continued in the year under consideration without any change in the constitution. It is a fact that according to provisions of Sec.80IA(4)(i)(a), the section applies to an enterprise which is a company registered in India or a consortium of companies or by an authority or a board or a corporation or any other body established or constituted under any Central or State Act. It is also a fact that the word "consortium" used in the provision has not been defined in the Income Tax Act. As per the Merriam Webster dictionary, the word "consortium" means "an agreement, combination, or group (as of companies) formed to undertake an enterprise beyond the resources of....
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....the ground that assessee is a firm. During the original assessment , the AO has allowed assessee's claim of deduction u/s 80IA(4) for the project Terna Bridge, and denied deduction u/s 80IA(4) for other two projects holding that those two projects are not new infrastructural facility. It means AO after considering the fact have concluded that the assessee, though firm was eligible for deduction for Terna Bridge Project. In this fact , we are of the opinion that the reopening is based on change of opinion. On perusal of the reason recorded , it is observed that the AO has not brought any new material on record for reopening. In the assessment order passed u/s 147, in para 4, it is clearly mentioned that there was Audit Objection. 7.2 Therefore, we are of the opinion that the reopening is not valid. Therefore, the assessee's Cross Objection Appeal is allowed for Assessment Year 2010-11. 7.3 In the result, Cross Objection Appeal filed by the Assessee is allowed. ITA No.1837/PUN/2018 A.Y. 2014-15 (by Revenue): 8. The Revenue's Ground No.1 is with reference to assessee's claim of deduction u/s 80IA(4) of the Act. The Assessing Officer had denied deduction u/s 80IA(4) of the ....