In a recent order, the Income Tax Appellate Tribunal (ITAT) Ahmedabad, has remanded the case of Shilp Gravures Ltd back to the Commissioner of Income Tax (Appeals) [CIT(A)] for further examination. The case involves the company’s claim for deduction under Section 80IA of the Income Tax Act, 1961, amounting to ₹1.56 crore for the assessment year 2017-18.
The dispute arose after the Assessing Officer (AO) disallowed the deduction claimed by Shilp Gravures Ltd under Section 80IA, which relates to income generated from the company’s windmill business.
The AO made the disallowance based on prior rulings, including the ITAT’s decision in the case of Goldmine Shares & Finance (P) Ltd., which dealt with the computation of profits for eligible businesses under Section 80IA.
Shilp Gravures Ltd appealed to the CIT(A), who allowed the deduction by referencing past favourable rulings in the company’s own cases for earlier years.
However, this being the department’s appeal, the tribunal bench of Judicial Member Shri T. R. Senthil Kumar and Accountant Member Shri Ramit Kochar, observed that the CIT(A) did not adequately examine the factual details specific to the assessment year in question, particularly concerning the commissioning of new windmills and the computation of deductions.
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It was noted that, “ the ld. CIT(A) whose powers are co-terminus with the powers of the AO, did not examine the factual matrix of claim of deduction u/s 80IA , its computation and its allowability thereof.”
Given this oversight, the Income Tax Appellate Tribunal has sent the case back to the CIT(A) for a detailed review of the facts related to the company’s claim under Section 80IA, ensuring that all relevant details are properly considered before a final decision is made.
The appeal of the Revenue was thus allowed for statistical purposes.
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