Disallowance of deduction claimed u/s 80IAB of the Income Tax Act, 1961

IN THE INCOME TAX APPELLATE TRIBUNAL,
DELHI BENCH: ‘G’ NEW DELHI

BEFORE SHRI O.P. KANT, ACCOUNTANT MEMBER
AND
SHRI KULDIP SINGH, JUDICIAL MEMBER
[Through Video Conferencing]

ITA No.7826/Del./2018
Assessment Year: 2011-12 

ACIT,
Central Circle-06,
New Delhi
PAN :AAGCA4439E
(Appellant) 

Vs. 

M/s. Oxygen Business Park
Pvt. Ltd. (Formerly known as
Achvis Softech Pvt. Ltd.),
Plot No. -7, Sec- 144,
Noida
(Respondent)

Appellant by Sh. Sanjeev Sapra, CA
Respondent by Sh. H.K. Chaudhary, CIT(DR)

Date of hearing 03.06.2021
Date of pronouncement 28.06.2021

ORDER

PER O.P. KANT, AM:

 This appeal by the Revenue is directed against order dated 27/09/2018 passed by the Learned Commissioner of Income Tax (Appeals)-24, New Delhi [in short ‘the Ld. CIT(A)’] for assessment year 2011-12 raising following grounds:

1. The order of Ld. CIT(A) is not correct in law and facts.

2. That on facts and circumstances of the case, the Ld. CIT(A) has erred in quashing the reassessment order passed by Assessing Officer u/s 153A r.w.s. 143(3) & deleting the addition of Rs.13,30,50,000/- made by the Assessing Officer by way of disallowance of deduction claimed u/s 80IAB of the Income Tax Act, 1961 on the ground that no incriminating material was unearthed during the search operation and therefore no addition can be made in assessment order passed u/s 153A r.w.s. 143(3) in this year.

3. The appellant craves for leave to add, amend any/all the ground of appeal before or during the course of hearing of the appeal.

2. Briefly stated facts of the case relevant to dispute before us are that the assessee, a company, was engaged in the development of Special Economic Zone (SEZ) for Information Technology (IT)/Information Technology enabled services (ITes) in Noida (Uttar Pradesh). For the year under consideration, the assessee filed return of income on 30/09/2011 declaring nil income. A search and seizure action under section 132 of the Income-tax Act, 1961 (in short ‘the Act’) was carried out at the premises of the assessee on 29/10/2013. A notice under section 153A of the Act was issued on 11/11/2014 for filing return of income consequent to search action. The assessee requested to treat the original return of income filed on 30/09/2011 as return filed in response to notice under section 153A of the Act. In the return of income, the assessee declared net profit of ₹ 155,13,39,200/-, which was claimed as deduction under section 80IAB of the Act. The Assessing Officer noticed that assessee sold SEZ buildings to two of its subsidiary companies, which were admitted as co-developer of SEZ. Tower A of SEZ building was transferred (subleased) to M/s Aachvis IT SEZ Infra Private Limited at value of ₹ 247 crore and Tower B of SEZ building was transferred (subleased) to M/s Standard IT Web Solutions Private Limited at value of ₹ 78 crore.

To know more in details find the attachment file