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| The Tax Publishers2020 TaxPub(DT) 2103 (Ahd-Trib) INCOME TAX ACT, 1961
Section 80-IB(3)
Claim of assessee for deduction under section 80IB could not be denied for year under consideration as the claim was accepted by the revenue in the earlier assessment years, which was not withdrawn.
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Deduction under section 80-IB(3) - Allowability - Deduction already allowed in past years and no change in facts and circumstances for relevant assessment year -
Issue arose as to whether assessee engaged in business of manufacturing of mills machinery parts and chemicals, satisfied all conditions relating to allowability of deduction under section 80-IB(3). Held: Undisputed fact was that assessee was claiming deduction under section 80IB for last several years and the same was accepted by Revenue in the assessment framed under section 143(3). Activity of assessee was already accepted by the Revenue as eligible for the deduction under section 80IB. Since there was no change in facts and circumstances for the year under consideration vis-Ã -vis earlier assessment years, principles of consistency need to be applied. Claim of assessee for deduction under section 80IB could not be denied for year under consideration as the claim was accepted by the revenue in the earlier assessment years, which was not withdrawn.
Followed:Saurashtra Cement & Chemical Industries Ltd. v. CIT (1979) 2 Taxman 22 (Guj) : 1980 TaxPub(DT) 0545 (Guj-HC); M/s. Sonata Software Ltd v. Addl. CIT (2015) 56 Taxmann.com 290 (Mumbai)
REFERRED :
FAVOUR : In assessee's favour
A.Y. :
IN THE ITAT, AHMEDABAD BENCH
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