M.B. Patil Constructions Vs DCIT (ITAT Pune)
80-IA deduction remanded for fresh verification; Deemed Dividend u/s 2(22)(e) sent back in light of SC’s Gopal & Sons; Partial Relief on Agri Income & Ad-hoc Expenses – Appeals Partly Allowed
Assessee engaged in civil & infrastructure development contracts, filed its return declaring income of ₹1.51 crore for A.Y. 2013-14. The case was scrutinized, & AO framed assessment u/s 143(3) determining total income at ₹54.83 crore. Major additions included disallowance u/s 40A(3), disallowance of agricultural income, ad-hoc disallowance of expenses, disallowance of deduction u/s 80-IA & a large deemed dividend addition u/s 2(22)(e). On appeal, CIT(A) partly confirmed & partly reduced these additions, giving rise to cross-appeals before the Tribunal.
Assessee did not press grounds relating to disallowance u/s 40A(3), agricultural income, & ad-hoc expenses. The only substantive dispute concerned disallowance of deduction u/s 80-IA of ₹2.73 crore. AO & CIT(A) had denied the claim citing non-filing of Form 10CCB & absence of agreements. However, before Tribunal Assessee produced an affidavit of its CFO showing that Form 10CCB was in fact filed during assessment & was available in the records. It was also claimed that agreements/tender documents had been provided both physically & in electronic form but were overlooked. Assessee further pointed out that deduction u/s 80-IA had been consistently allowed in earlier years, including by the Settlement Commission.
