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Income Tax Appellate Tribunal, HYDERABAD BENCH “B”, HYDERABAD
Before: SHRI C.N. PRASAD & SHRI M. BALAGANESH
This appeal filed by the revenue is directed against the order of CIT(A) – 9, dated 31/01/2018, Hyderabad for AY 2015-16.
Brief facts are that the assessee is a Partnership Firm engaged in real estate business. For the year 2015-16 assessee filed its return of income admitting income of Rs. Nil after claiming deduction u/s 80IB(10) of the IT Act, 1961 of Rs. 3,64,90,555/-. In the scrutiny assessment, the A.O. denied the assessee's claim by holding that the assessee is not eligible for deduction since the matter is sub-judice regarding deduction u/s 80IB before High Court.
Aggrieved, assessee carried the matter in appeal before the first appellate authority by contending that the A.O. failed to note that the assessee's claim of deduction u/s 80IB(10) was allowed for the past several years and erred in predetermining that the assessee is
Ld. CIT (A) considered the submissions of the assessee and allowed the appeal by following the decision of the ITAT Hyderabad Bench in the assessee's own case (ITA No.54/Hyd/2015, dated 04.09.2015) for the A.Y. 2010-11. Aggrieved, Revenue is in appeal before the Tribunal by raising the following grounds of appeal:
1. The learned C!T(A) has erred both in law and on facts of the case.
2. The learned C!T(A) should have appreciated the fact that the date of first approval 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- 03-2008. However, as it was not completed by 31-032008, claim of deduction u/s 8018(10) of the Income Tax Act, 1961 cannot be allowed
3. Any other ground(s) that may be urged at the time of hearing.”
Learned Departmental Representative relied upon the order of the AO.
On the other hand, Learned Counsel for the Assessee strongly supported the decision of the Ld. CIT(A).
We have carefully considered the rival submissions and perused the material on record. We have also carefully gone through the orders passed by the Tax Authorities. While allowing the assessee's appeal, Ld. CIT(A) rightly followed the decision of the ITAT Hyderabad Bench (supra) in assessee's own case, wherein an identical issue was decided by the Tribunal in favour of the assessee. Therefore, we are of the view that the order passed by the ld. CIT(A) is fair and reasonable and it does not call for any interference.
In the result, appeal of the revenue is dismissed.
Pronounced in the open Court on 3rd September, 2020.