OPTI PRODUCTS PVT. LTD.,CHENNAI vs. ITO, CHENNAI

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ITA 330/CHNY/2019Status: DisposedITAT Chennai13 March 2020AY 2011-123 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal restored the issue to the Assessing Officer for re-adjudication after the decision of the Hon'ble High Court in the pending Writ Petition. This was done in the interest of natural justice, as the eligibility for deduction depended on the outcome of the Writ Petition.

What were the facts?

The assessee claimed deduction under section 80IA(4)(iii) for an industrial park. The Assessing Officer disallowed this claim, which was confirmed by the CIT(A). The assessee had filed a Writ Petition before the High Court regarding the required notification for this deduction.

What were the issues?

The primary issue was the denial of deduction under Section 80IA(4)(iii) due to non-receipt of a required notification. The pendency of a Writ Petition before the High Court concerning this notification was a key factor.

Which sections of the Income-tax Act were involved?

Section 80IA(4)(iii),Section 143(1),Section 143(3)

AI-generated summary — verify with the full judgment below

Before: Shri Duvvuru RL Reddy & Shri S. Jayaraman

Hearing: 05.03.2020Pronounced: 13.03.2020

आयकर अपीलीय अिधकरण, ‘‘बी’’ �ायपीठ, चे�ई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI �ी धु�ु� आर.एल रे�ी, �ाियक सद� एवं �ी एस जयरामन, लेखा सद� के सम� Before Shri Duvvuru RL Reddy, Judicial Member & Shri S. Jayaraman, Accountant Member आयकर अपील सं./ Year:2011-12 M/s.Opti Products Pvt. Ltd., The Income Tax Officer, No. 81-B, 2nd Main Road, Vs. Corporate Ward 5 (1), Ambattur Industrial Estate, Chennai 600 034. Chennai-600 058. [PAN: AAACO1099E] (अपीलाथ� /Appellant) (��थ�/Respondent) अपीलाथ� की ओर से / Appellant by : Shri D. Anand, Advocate ��थ� की ओर से/Respondent by : Shri A. Sundararajan, Addl. CIT सुनवाई की तारीख/ Date of hearing : 05.03.2020 घोषणा की तारीख /Date of Pronouncement : 13.03.2020 आदेश /O R D E R PER DUVVURUL RL REDDY, JUDICIAL MEMBER:

This appeal filed by the assessee is directed against the order of the ld. Commissioner of Income Tax (Appeals) 3, Chennai dated 27.12.2018 relevant to the assessment year 2011-12. The effective ground raised in the appeal of the assessee relates to confirmation of disallowance of deduction claimed under section 80IA(4)(iii) of the Income Tax Act, 1961 [“Act” in short] of ₹.61,37,197/-.

2.

Brief facts of the case are that the assessee filed its return of income for the assessment year 2011-12 on 12.09.2011 declaring total income of ₹.5,724/-. The return filed by the assessee was processed under section 143(1) of the Act. Subsequently, the case was selected for scrutiny and against the statutory notices, the assessee furnished the details. On verification of the details filed by the assessee, the Assessing Officer completed the assessment under section 143(3) of the Act by assessing total income of the assessee at ₹.61,37,197/- after making disallowance of claim of deduction under section 80IA(4)(iii) of the Act at ₹.61,37,197/-. On appeal, the ld. CIT(A) confirmed the disallowance.

3.

On being aggrieved, the assessee is in appeal before the Tribunal. The ld. Counsel for the assessee has submitted that the assessee claimed deduction under section 80IA(4)(iii) of the Act in respect of ‘Prince Tatia Info Park’, which was denied by the Assessing Officer. It was further submission that against the non-grant of registration required under section 80IA(4)(iii) of the Act, the assessee filed a Writ Petition before the Hon’ble jurisdictional High Court in WP No.26672/2011 praying for issuance of notification for recognition for claiming the deduction under section 80IA(4)(iii) of the Act, which is still pending till now and prayed for suitable direction to restore the matter to the file of the Assessing Officer for re-adjudication after disposal of the Writ Petition by the Hon’ble jurisdictional High Court. On the other hand, the ld. DR did not raise any serious objection.

4.

We have heard the rival submissions. It is noticed that the assessee has filed Writ Petition before the Hon’ble jurisdictional High Court for being notified by Central Government in accordance with the Industrial Park Scheme and the issues in this appeal are against the denial of the benefit of deduction under section 80IA(4)(iii) of the Act. Thus, in the interest of natural justice, the issues in this appeal are restored to the file of the Assessing Officer to re-adjudicate the issues after the decision of the Hon’ble jurisdictional High Court in the Writ Petition filed by the assessee in WP No.26672/2011.

5.

In the result, the appeal filed by the assessee is allowed for statistical purposes.

Order pronounced on the 13th March, 2020 at Chennai.

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