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

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.

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.

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