This Tax Appeal is directed against the common order dated 12th November 2010 passed by the Income Tax Appellate Tribunal, Ahmedabad, Bench 'A' insofar as it concerned ITA No. 2413 of 2007 for the Assessment Year 200405. 2.0 The appellant has raised the following question proposing it as substantial question of law.
“Whether the Appellate Tribunal is right in law and on facts in deleting the disallowance of claim of deduction u/s.80IB of the Act?'
3.0 The assessee claimed deduction for Rs. 12,04,73,904/ for the Assessment Year 200405 under Section 80IB of the Income Tax Act, 1961 (hereinafter referred to as 'the Act'). The amount was, however, restricted to total income of Rs.11,82,75,912/. The issue involved was in respect of the said deduction on the basis of purchase of machinery. It was the case of the assessee that the machineries which were installed at its factory units were new and, therefore, they were qualified for deduction under Section 80IB of the Act.
3.1 The Assessing Officer did not allow the deduction as per his Assessment Order dated 22nd December 2006 taking a view that value of old machineries was more than 20% which disentitled the assessee from claiming the deduction in question. The CIT (A) by his order dated 19th March 2007 held in favour of the assessee on the basis of this order for preceding year 200304. It was noted by the Appellate (Commissioner) that the Assessing Officer had not accepted the contention of the assessee on the ground that the decision of CIT (A) was not accepted by the Revenue and an appeal was pending before the Income Tax Appellate Tribunal. The Appellate Commissioner allowed the appeal.
4.0 The Revenue approached the Income Tax Tribunal which decided the two appeals for the assessment orders 200304 and 200405 by common impugned order as mentioned above. As far as Appeal No.2413 of 2007 related to Assessment Year 200405 was concerned, the Tribunal dismissed the same by observing in para 11 of the impugned common order as under:
“The learned CIT(A) following his appellate order for assessment year 200304 directed the AO to grant deduction u/s.80IB of the IT Act to the assessee. This issue is same as is considered in preceding assessment year 200304. By following the same reasons for decision in that year above, we dismiss this appeal of the revenue was well.”
5.0 We have dismissed the Tax Appeal No. 665 of 2011 by our order dated 4th July 2012, which related to Assessment Year 200304. Since the impugned order is common and the facts and the grounds are also similar, the present appeal which is in respect of subsequent Assessment Year 200405 is also liable to be dismissed on the same reasoning given by us in our judgment in Tax Appeal No.665 of 2011 mentioned above.
6.0 The reasoning supplied in the abovementioned order dated 04th July 2012 in Tax Appeal No. 665 of 2011 holds good for the purpose of present appeal too. In that view and for the reasons recorded in Tax Appeal No.665 of 2011, the present appeal is liable to be dismissed. No substantial question of law arises for consideration by this Court.
7.0 Accordingly, the present Tax Appeal is dismissed.
[V. M. SAHAI, J.] Amit [N. V. ANJARIA, J.]