THE INDIAN HUME PIPE COMPANY LTD,MUMBAI vs. ASST CIT CC 3(3), MUMBAI

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ITA 2210/MUM/2017Status: DisposedITAT Mumbai19 September 2018AY 2012-133 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that a similar ground of appeal in a prior assessment year was restored to the Assessing Officer. Following this precedent, the Tribunal restored the current appeal to the Assessing Officer for decision.

What were the facts?

The assessee claimed deduction under Section 80IA of the Income Tax Act. The CIT(A) confirmed the disallowance, treating the assessee as a work contractor and not a developer. The assessee argued that the appeal was covered by a previous ITAT decision in their own case.

What were the issues?

Whether the assessee qualifies as a developer for the purpose of claiming deduction under Section 80IA, or if they are merely a work contractor.

Which sections of the Income-tax Act were involved?

Section 80IA

AI-generated summary — verify with the full judgment below

PER PAWAN SINGH, JUDICIAL MEMBER;

1.

This appeal by assessee under Section 253 of Income-tax Act is directed against the order of ld. CIT(A)-51, Mumbai dated 23.02.2017 for Assessment Year 2012-13. The assessee has raised the following grounds of appeal:

1) On the facts and in circumstances of the case and in law the Ld. CIT (A) erred in confirming the disallowance of claim of deduction u/s SOIA of the Income Tax Act, 1961 relying upon the decisions of the Hon'ble ITAT Mumbai, for I.T. Asst. Years 2005-06 to 2010-11, for the reasons mentioned in the order. 2) On the facts and in circumstances of the case and in law the Ld. CIT(A) erred in confirming the disallowance of claim of deduction u/s 80IA of the I.T. Act, 1961, treating the appellant as work contractor and not as developer for the reasons mentioned in the order.

2.

At the outset of hearing, the ld. Authorized Representative (AR) of the assessee submits that both the grounds of appeal

raised by assessee are covered in favour of assessee by the decision of Tribunal in assessee’s own Mum 2017-The Indian Hume Pipe Company Ltd. case for Assessment Year 2011-12 in ITA No. 2868/Mum/2016 dated 03.01.2017. On the other hand, the ld. Departmental Representative (DR) for the Revenue after going through the contents of the decision submits that similar ground of appeal was restored by the Tribunal to the file of Assessing Officer in assessee’s own case for Assessment Year 2011-12 in ITA No. 2868/Mum/2016 vide order date 03.01. 2017. Therefore, he has no objection, if this ground of appeal is also restored to the file of Assessing Officer with similar direction.

3. We have considered the rival submission of both the parties and have gone through the orders of authorities below. We have noted that similar ground of appeal was raised by assessee in Assessment Year 2011-12 in ITA No. 2868/Mum/2016 and the Co-ordinate Bench of Tribunal by following the decision of Assessment Year 2009-10 and 2010-11 restored the same to the file of Assessing Officer. Therefore, respectfully following the decision of Co-ordinate Bench, the appeal of the assessee is restored to the file of Assessing Officer to decide in accordance with the direction contained in order dated 03.01.2017 in ITA No. 2868/Mum/2016.

4.

In the result, appeal of the assessee is allowed for statistical purpose.

Order pronounced in the open court on 19 /09/2018.

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