BAASHYAM CONSTRUCTIONS PVT LTD.,CHENNAI vs. ITO, CENTRAL CIECLE 2(1), CHENNAI

ITA 3849/CHNY/2025Status: DisposedITAT Chennai20 May 2026AY 2010-1118 pages
AI SummaryAllowed

What were the facts?

The assessee claimed deduction under Section 80-IB(10) for a housing project. The Assessing Officer denied the deduction, viewing it as a land sale. The CIT(A) initially allowed the deduction but directed an adjustment for the cost of land. The Tribunal and High Court eventually ruled in favor of the assessee, stating they were a developer entitled to the deduction.

What did the Tribunal hold?

The Tribunal held that the CIT(A)'s direction to adjust the cost of land was an error, as the cost was already included in the Work-in-Progress debited to the P&L account. The Tribunal rectified the order to allow the deduction based on the disclosed profits.

What were the issues?

Whether the assessee was eligible for deduction under Section 80-IB(10) as a developer and whether the CIT(A) erred in directing an adjustment for the cost of land.

Which sections of the Income-tax Act were involved?

Section 80-IB(10),Section 115JB,Section 250,Section 143(3),Section 154

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘B’ BENCH: CHENNAI

Before: SHRI ABY T. VARKEY & SHRI S.R.RAGHUNATHA

Hearing: 24.03.2026Pronounced: 20.05.2026

PER ABY T. VARKEY, JM: This appeal preferred by the assessee is against the order of the Learned Commissioner of Income Tax (Appeals)-19, Chennai (hereinafter referred to as ‘Ld.CIT(A)’) dated 14.11.2025 for the Assessment Year (hereinafter referred to as ‘AY’) 2010-11. M/s. Baashyam Constructions Pvt. Ltd.

2.

Briefly stated, the facts of the case are that, the assessee company is engaged in the business of real estate.

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 80-IB(10)

All 100 judgments and leading authorities on Section 80-IB(10) →

Recent GST High Court judgments

Search GST case law →