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Facts
The assessee claimed deduction under Section 80IA for its bio-medical and municipal solid waste management facility in Salem for A.Y. 2017-18 and 2018-19. The Assessing Officer and CIT(A) disallowed the claim, holding that the consent orders from the Pollution Control Board did not constitute an 'agreement' with the government or local authority, a prerequisite for the deduction. The assessee filed a declaration under Section 158A(1), stating that an identical question of law for A.Y. 2013-14 and 2014-15 is pending adjudication before the Hon'ble High Court.
Held
The Tribunal admitted the assessee's claim under Section 158A(3) as both parties acknowledged the identical question of law pending before the High Court for earlier assessment years. The appeal for A.Y. 2017-18 was restored to the Assessing Officer with directions to apply the final decision of the High Court once it is pronounced. The appeal for A.Y. 2018-19 was disposed of mutatis mutandis, applying the same directions.
Key Issues
1. Whether consent orders from the Pollution Control Board fulfill the 'agreement' condition for claiming deduction under Section 80IA of the Income Tax Act, 1961. 2. Whether to admit and remand a case under Section 158A where an identical question of law is pending before a higher court for previous assessment years.
Sections Cited
Section 143(3) of the Income Tax Act, 1961, Section 80IA of the Income Tax Act, 1961, Section 80IA(4) of the Income Tax Act, 1961, Section 80IA(4)(1)(b) of the Income Tax Act, 1961, Section 234B of the Income Tax Act, 1961, Section 250 of the Income Tax Act, 1961, Section 158A(1) of the Income Tax Act, 1961, Section 158A(3) of the Income Tax Act, 1961, Section 260A of the Income Tax Act, 1961, Section 261 of the Income Tax Act, 1961, Section 25 of Water (Prevention and Control of Pollution) Act, 1974, Section 21 of the Air (Prevention and Control of Pollution) Act, 1981
AI-generated summary — verify with the full judgment below
Sr. Private Secretary ITAT, Hyderabad", "summary": { "facts": "The assessee company, engaged in bio-medical and municipal solid waste management, claimed deduction under Section 80IA for its Salem unit. The Assessing Officer disallowed the deduction, arguing that the company failed to provide an "agreement" with a government body as required, and relied on previous disallowances for earlier assessment years. The CIT(A) upheld the Assessing Officer's order.", "held": "The Tribunal noted that an identical question of law was pending before the High Court for earlier assessment years. By admitting the assessee's application under Section 158A(1), the Tribunal directed the Assessing Officer to apply the High Court's decision to the current appeal once it becomes final.", "result": "Allowed", "sections": [ "80LA(4)", "80IA", "143(2)", "158A(1)", "234B", "260A", "250", "143(3)", "261" ], "issues": "Whether the consent orders from the Pollution Control Board constitute an "agreement" for the purpose of claiming deduction under Section 80IA, and whether the decision on an identical issue pending before the High Court should be applied." } }