INCOME-TAX OFFICER, WARD - 7(3), PUNE vs. RAMESH VITTHAL GALANDE AND OTHERS, PUNE

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ITA 1589/PUN/2017Status: DisposedITAT Pune31 January 2020AY 2011-124 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the CIT(A)'s order, allowing the deduction. This decision was based on a previous ruling by the Tribunal for the assessment year 2010-11, where the assessee's claim was accepted.

What were the facts?

The assessee, a developer, claimed deduction under Section 80IB(10) for its residential project. The Assessing Officer denied this deduction, citing reasons similar to those in the preceding assessment year.

What were the issues?

Whether the assessee is eligible for deduction under Section 80IB(10) when the project was not completed within the stipulated period, following a precedent from a previous assessment year.

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, PUNE BENCH “A”, PUNE

Before: SHRI R.S. SYAL & SHRI S.S. VISWANETHRA RAVI

For Respondent: Shri Alok Malviya

PER BENCH: These two appeals by the Revenue arise out of the orders passed by the CIT(A), Pune-5, Pune on 20-03-2017 in relation to the assessment years 2011-12 and 2012-13. Both the appeals are based on similar facts and identical grounds. We are, therefore, proceeding to dispose them off by this consolidated order for the sake of convenience. Ramesh V. Galande

2.

The only grievance raised in the present appeals is against the denial of deduction u/s 80IB(10) of the Income-tax Act, 1961 (hereinafter referred to as „the Act‟).

3.

Briefly stated, the facts for the assessment year 2011-12 are that the assessee, at material time, was engaged in the business as developer and builder and had constructed a residential project called “La Gloriosa‟ at Vadgaon Sheri, Pune. Deduction was claimed u/s 80IB(10) of the Act. The AO observed in para 4 of the assessment order for the A.Y. 2011-12 that in the proceedings relating to the preceding year for the A.Y. 2010-11, he had disallowed the assessee‟s claim of deduction u/s 80IB(10) of the Act amounting to Rs.3.05 crore and odd on the ground that the assessee did not complete the entire project before the stipulated period. Another factor which was taken note of was that of the partial completion of the project. Swayed by the reasons given for the preceding assessment year, the AO did not grant deduction u/s 80IB(10) of the Act for the years under consideration as well. The ld. CIT(A) overturned the assessment orders by observing that the Tribunal has accepted the assessee‟s claim qua the assessment year 2010-11. The Revenue is aggrieved by the allowance of deduction Ramesh V. Galande

u/s 80IB(10) of the Act by the ld. CIT(A) for both the years under consideration.

4.

We have heard the ld. DR and gone through the relevant material on record. There is no appearance from the side of assessee. From the material available on record, it is seen that the AO denied the benefit of deduction u/s 80IB(10) of the Act on the grounds similar to those of the assessment year 2010-11. The matter for such an earlier year came up for consideration before the Pune Benches of Tribunal in ITA No.1909/PUN/2014. Vide order dated 03.03.2017, the Tribunal has accepted the assessee‟s claim and allowed the claim u/s 80IB(10) of the Act. Since the facts and circumstances of the instant appeals are mutatis mutandis similar to those of the assessment year 2010-11, respectfully following the precedent, we uphold the impugned orders on this score.

5.

In the result, the appeals are dismissed.

Order pronounced in the Open Court on 31st January, 2020. (S.S. VISWANETHRA RAVI) VICE PRESIDENT पपणे Pune; ददिधांक Dated : 31st January, 2020 GCVSR Ramesh V. Galande

आदेश की प्रनिनिनप अग्रेनषि/Copy of the Order is forwarded to: 1. अपऩिधर्थी / The Appellant; प्रत्यर्थी / The Respondent;

2.3.

The CIT(A), Pune-5, Pune

4.

The Pr.CIT, Pune-4, Pune 5. विभागीय प्रविविवि, आयकर अपीलीय अविकरण, पुणे “ए” / DR „A‟, ITAT, Pune; 6. गार्ड फाईल / Guard file. आदेशधिपसधर/ BY ORDER, //// Senior Private Secretary आयकर अपीलीय अविकरण ,पुणे / ITAT, Pune

Date

1.

Draft dictated on 31-01-2020 Sr.PS

2.

Draft placed before author 31-01-2020 Sr.PS

3.

Draft proposed & placed JM before the second member

4.

Draft discussed/approved JM by Second Member.

5.

Approved Draft comes to Sr.PS the Sr.PS/PS

6.

Kept for pronouncement on Sr.PS

7.

Date of uploading order Sr.PS

8.

File sent to the Bench Clerk Sr.PS

9.

Date on which file goes to the Head Clerk

10.

Date on which file goes to the A.R.

11.

Date of dispatch of Order. **

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