Case Law Details
K. Raheja IT Park (Hyderabad) Pvt. Ltd., Vs DCIT (ITAT Hyderabad)
Conclusion: When deduction u/s 80IA(4) had been granted in first year of claim the same could not be denied in subsequent years, unless assessee had changed the original terms and conditions in the first year while fulfilling for the granting deduction in the first year of operation.
Held: Assessee company, engaged in the business of developing industrial and non-industrial parks, filed its return of income for the AY 2011-12 declaring total income of Rs. 15,30,02,887/- after claiming deduction under section 80IA(4) amounting to Rs. 14,97,83,693/-. Subsequently, the case was selected for scrutiny and the assessment was completed under section 143(3) by determining the total income at Rs. 28,18,46,030/-. By exercising powers vested u/s 263, CIT observed that, prima facie, assessment order passed u/s 143(3) was erroneous and prejudicial to the interests of revenue as AO while passing the impugned order allowing the deduction u/s 80IA(4)(iii), had not verified all relevant facts in respect of satisfaction or otherwise of all conditions regarding its claim for deduction u/s 80IA(4) (assessee claimed this deduction for the first time in AY 2009-10). It was held that when deduction u/s 80IA(4) has been granted in first year of claim the same could not be denied in subsequent years, unless assessee had changed the original terms and conditions in the first year while fulfilling for the granting deduction in the first year of operation. On perusal of the documents, there was no deviation from the first year of operation. AO also could not bring any such deviation to establish that assessee had changed the original terms and conditions from the first year of operation. Even the coordinate benches of this Tribunal in assessee’s own case in earlier AYs had allowed the assessee’s claim of deduction u/s 80IA(4). Therefore, the order passed by AO was not erroneous and prejudicial to the interests of revenue as alleged by CIT. The order passed by CIT u/s 263 was quashed and order of AO was restored.
FULL TEXT OF THE ORDER OF ITAT HYDERABAD
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