2026 (5) TMI 834

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....utset, parties herein conceded that the facts and issues involved in both these appeals are substantially similar and identical. Having heard the submissions, both these appeals are heard together and disposed of vide this consolidated order. 3. The main issue emanating in both these appeals a/w. some other grounds is that deduction claimed by the assessee u/s. 80IA(4) of the Income Tax Act, 1961 (for short 'the Act') was denied by the A.O for the following reasons: (i) Assessee is not a new industrial undertaking eligible u/s. 80IA of the Act for the reason that the assessee was an electricity Board and on 01.12.2000, the financial and functional segregation of the assessee from the erstwhile undivided Board took place. This is....

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....i) Since plant and machinery was obtained from CSEB, it cannot be said that book value appearing in the books of CSEB as on 01.04.2004 relates to the assessee company. The assessee has not, therefore, complied with Section 80IA(4)(iv)(c) of the Act as per Page 6 of the assessment order. 4. That when the matter went before the Ld. CIT(Appeals)/NFAC, it was held while upholding the findings of the A.O that the assessee had not undertaken any substantial modernization but was formed out of already existing business i.e. MPEB (later on it became CSEB) which was in existence even before 1991. The assessee, therefore, did not fulfil conditions laid out in Section 80IA(4)(iv) of the Act and thus, "2nd proviso" to Section 80IA(3) of the Act does....

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....ng the submissions of the Ld. Counsel for the assessee and on a careful perusal of the documents placed on record. 7. Having said so, we are in agreement with the submissions of the Ld. Counsel for the assessee in the interest of substantive justice. It is a question of PSU and question of whether the said PSU is entitled for deduction u/s. 80IA(4) of the Act. That as per the hierarchy of adjudication, the A.O has arrived at a conclusion that no such deduction should be available to the assessee since the requirement of the provisions has not been complied with. Moving further ahead at the level of the Ld. CIT(Appeals)/NFAC, the assessee had not filed any written submission nor any evidence to substantiate the claim on merits. That in ab....