ORDER PER MAHAVIR SINGH, VP :

The captioned appeal has been filed by the Revenue against the order of the First Appellate order dated 04.08.2023 passed by NFAC, New Delhi u/s

250 of the Income Tax Act, 1961 pertaining to assessment year 2017-18.

2. The Revenue has raised following grounds of appeal:-

“(a) Whether the Ld. CIT(A) has erred on facts by considering CIAL and DIAL as statutory bodies.

(b) Whether the Ld. CIT(A) has erred on facts and in law in deleting the disallowance of deduction u/s 80IA of the Act as the assessee has not fulfilled basic condition to claim the said deduction.”

3. The brief facts of the case are that assessee company filed its income tax return on 31.10.2017 declaring taxable income of Rs.4,13,13,970/-, on a total turnover of Rs.246.26 crores after ‘claiming deduction under section 80IA of the Act of Rs.50,08,76,152/- on profits derived from ground handling operations at Delhi and Cochin Airport. However, it paid tax on book profits of Rs.52,97,70,419/- since the tax payable under section 115JB of the Act was higher than the regular provision consequent to the claim of the deduction under section 80IA of the Act. Subsequently, the case was selected for scru