INCOME TAX OFFICER, WARD-11(5), HYDERABAD vs. NAGARJUNA HOMES, HYDERABAD

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ITA 42/HYD/2020Status: DisposedITAT Hyderabad28 July 2021AY 2017-184 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the CIT(A)'s decision, following its own consistent rulings in the assessee's own cases for similar issues. The deduction under Section 80IB(10) was therefore allowed.

What were the facts?

The assessee claimed deduction under Section 80IB(10) for a housing project. The Assessing Officer denied this deduction, stating the project was not completed within the stipulated time. The CIT(A) allowed the assessee's appeal, relying on a previous tribunal decision.

What were the issues?

Whether the assessee is eligible for deduction under Section 80IB(10) when the project completion date is disputed in relation to the approval date.

Which sections of the Income-tax Act were involved?

Section 80IB(10)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, HYDERABAD BENCH “A”, HYDERABAD

For Appellant: Shri K.C. Devdas
For Respondent: Shri Pavitran Kumar, DR
Hearing: 12/07/2021Pronounced: 28/07/2021

This appeal is filed by the Department against the order of the Ld. CIT(A)-5, Hyderabad in appeal No. 10100/2019-20/CIT(A)-5, dated 13/11/2019 passed U/s. 143(3) r.w.s 250(6) of the Act for the A.Y. 2017-18.

2.

The Revenue has raised three grounds in its appeal and they are extracted herein below for reference:-

“(1) The Ld. CIT(A) has erred both in law and on facts of the case. (2) The Ld. CIT(A) should have appreciated the fact that the date of first approve i.e., 07/05/2001 should be taken as the date of approval of local authority and because it is prior to 01/04/2004, the construction should have been completed by 31/3/2008. However, as it was not completed by 31/3/2008, claim of deduction u/s. 80IB(10) of the Act cannot be allowed. (3) Any other ground(s) that may be urged at the time of hearing.”

3.

The brief facts of the case are that the assessee is partnership- firm engaged in the business of development and construction of housing projects e-filed its return of income for the A.Y. 2017-18 on 30/10/2017 declaring an income of Rs. 4,50,000/- after claiming deduction of Rs. 1,74,06,255/- under Chapter-VIA of the Act. Subsequently, the case was taken up for scrutiny under CASS. During the assessment proceedings, the Ld. A.O denied the assessee’s claim of deduction of Rs. 1,74,06,255/- made U/s. 80IB(10) of the Act by observing that the assessee-company has not completed the project within the stipulated period of time and therefore the assessee-company is not eligible to claim deduction U/s. 80IB(10) of the Act and accordingly made addition of Rs. 1,74,06,255/-. On appeal, the Ld. CIT(A) considering the submissions of the assessee allowed the appeal by relying on the decision of the Hyderabad Bench of the Tribunal in the assessee’s own case in dated 30/09/2020 for the A.Y. 2005-06. Aggrieved with the decision of the Ld. CIT(A), the Revenue is in appeal before us.

4.

At the outset, Ld. DR relied on the order of the Ld. A.O. and argued in support of the views expressed by him. On the other hand, the Ld. AR relied on the order of the Ld. CIT(A).

5.

We have heard the rival submissions and carefully perused the materials on record. On examining the Ld. CIT(A)’s order as well as the decisions of the Hyderabad Bench of the Tribunal in the assessee’s own case for the A.Y.: 2010-11, 2014-15 and 2015-16, we are of the considered view that the Ld. CIT(A) has rightly allowed the assessee’s appeal by following the decisions of the ITAT, Hyderabad Bench (supra) in the assessee’s own case, wherein the identical issue of granting deduction U/s. 80IB (10) was decided in favour of the assessee. Therefore, following the consistent view taken by the Tribunal, We are of the view that the order of the Ld. CIT(A) does not call for any interference.

6.

In the result, appeal filed by the Revenue is dismissed.

Pronounced in the open Court on the 28th July, 2021.

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