M/S. SHRI BALAJI ENGICONS LIMITED,JHARSUGUDA vs. DCIT CIRCLE-1(1), SAMBALPUR

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ITA 85/CTK/2022Status: DisposedITAT Cuttack28 February 2023AY 2012-133 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the allowability of the deduction for AY 2012-2013 cannot be considered without adjudicating the claim for the first year (AY 2011-2012). Therefore, the issue was restored to the CIT(A) for adjudication of the first year's claim.

What were the facts?

The assessee claimed deduction under Section 80IA/80IB for AY 2012-2013, which was raised in a belated return. The Revenue argued that the claim was not made in the original return. The first year of deduction was AY 2011-2012, and its adjudication was pending before the CIT(A).

What were the issues?

Whether a deduction claim under Section 80IA/80IB raised in a belated return is admissible when the claim for the first year of eligibility is still pending adjudication. The primary requirement of these deductions is to be made in the first year itself.

Which sections of the Income-tax Act were involved?

Section 80IA,Section 80IB,Section 153A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, CUTTACK BENCH CUTTACK

Before: SHRI GEORGE MATHAN & SHRI ARUN KHODPIA

Hearing: 28/02/2023Pronounced: 28/02/2023

O R D E R Per Bench : This is an appeal filed by the assessee against the order of the ld. CIT(A)-2, Bhubaneswar, dated 31.03.2022, passed in I.T.Appeal No.0042/2015-16, for the assessment year 2012-2013.

2.

It was submitted by the ld. AR that the assessee is entitled to the deduction u/s.80IA/80IB of the Act, insofar as the issue involved in the present appeal is squarely covered by the decision of the coordinate bench of the Tribunal in assessee’s own case for the A.Y.2014-2015, passed in order dated 23.12.2021. It was the submission that the assessee may be granted benefit of deduction u/s.80IA/80IB of the Act.

3.

In reply, ld. CIT-DR submitted that the assessee has not made the claim for deduction u/s.80IA/80IB of the Act in its original return and that the claim has been raised only in the return filed belatedly in response to a notice u/s.153A of the Act. It was the submission that as the assessee has not raised its claim for deduction u/s.80IA/80IB in the original return, the assessee is not entitled to the deduction u/s.80IA/80IB of the Act.

4.

To a specific query as to which is the first year of deduction u/s.80IA/80IB of the Act, it was submitted by the ld. AR that the first year is the assessment year 2011-2012 and the appeal in respect of the claim of deduction u/s.80IA/80IB of the Act on merits is pending before the ld.CIT(A). At this point, it was pointed out that when the first year in respect of deduction u/s.80IA/80IB of the Act has not been adjudicated on merits, the allowability of claim of deduction u/s.80IA/80IB of the Act for the subsequent year cannot be considered, insofar as the primary requirement of deduction u/s.80IA/80IB of the Act is to be made in the first year itself. As it has been submitted by the ld. AR that the appeal for the assessment year 2011-2012 is pending before the ld. CIT(A). As it is noticed that the issue of deduction u/s.80IA/80IB of the Act is pending before the ld. CIT(A) for the first year, being the assessment year 2011- 2012 of the issues is on merits in respect of deduction u/s.80IA/80IB of the Act, we are of the view that the Tribunal cannot adjudicate much less the ld. CIT(A) should not have adjudicated this issue of deduction u/s.80IA/80IB of the Act without adjudicating the first year being the assessment year 2011-2012 in respect of the claim of deduction u/s.80IA/80IB of the Act. This being so, the issue in this appeal is restored to the file of ld. CIT(A) to adjudicate the issue of deduction u/s.80IA/80IB of the Act for the first year being A.Y.2011-2012 in respect of the said

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