ASSISTANT COMMISSIONER OF INCOME-TAX,CENTRAL CIRCLE-1(3),, PUNE vs. GERA REALTY ESTATES,, PUNE

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ITSSA 79/PUN/2019Status: DisposedITAT Pune08 February 2023AY 2012-134 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 held that the CIT(A)'s direction to allow proportionate deduction under Section 80IB(10) was based on his prior decision for the assessment year 2011-12. The Tribunal noted that this very issue, concerning proportionate deduction in the assessee's own case for assessment year 2011-12, had been decided by a coordinate bench of the Tribunal in ITA No.2080/PUN/2017. In that appeal, the Revenue's appeal was dismissed. The Tribunal, respectfully following the coordinate bench's order, which aligned with the consistent view of several High Courts that allow deduction under Section 80IB(10) on a proportionate basis in similar circumstances, found no reason to interfere with the impugned order. Therefore, the appeal filed by the Revenue was dismissed.

What were the facts?

The Revenue has appealed against the order of the CIT(A)-11, Pune, for the assessment year 2012-13. The Assessing Officer had denied the deduction under Section 80IB(10) of the Income Tax Act, 1961, on the grounds that the assessee, M/s. Gera Realty Estates, had not provided separate accounts for the projects. The CIT(A), however, directed that proportionate deduction be allowed, relying on his own decision for the assessment year 2011-12. This decision was made in a combined order covering assessment years 2010-11 to 2014-15. The Revenue is aggrieved by this allowance of proportionate deduction.

What were the issues?

1. Whether the CIT(A) erred in directing the allowance of proportionate deduction under Section 80IB(10) of the Income Tax Act, 1961, when the assessee had not furnished separate accounts for the projects. Assessee's Contention: The judgment does not record any specific arguments made by the assessee's representatives, Shri S.K. Tyagi & Shri Ramesh S. Soniminde. Revenue's Contention: The Revenue contended that the CIT(A) was incorrect in allowing proportionate deduction under Section 80IB(10) because the assessee failed to provide the required separate accounts for the projects, which is a prerequisite for claiming such deduction.

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 Appellant: Shri S.K. Tyagi &, Shri Ramesh S. Soniminde
For Respondent: Shri Keyur Patel

आदेश / ORDER

PER R.S. SYAL, VP :

This appeal by the Revenue is directed against the combined

order passed by the CIT(A)-11, Pune on 18-02-2019 in relation to

certain assessment years including 2012-13.

2.

The only issue raised by the Revenue is against the direction

of the ld. CIT(A) to allow deduction u/s.80IB(10) on

proportionate basis.

2 IT(SS) A.No.79/PUN/2019 M/s. Gera Realty Estates

3.

Filtering out needless details, it is seen that the Assessing

Officer (AO) denied the benefit of deduction u/s.80IB(10) on the

ground that the assessee had not furnished separate accounts of

the projects required for claiming such deduction. The ld.

CIT(A), vide combined impugned order for the A.Yrs. 2010-11 to

2014-15, discussed this issue at pages 21 and 22 of his order.

Relying on the view taken by him for the A.Y. 2011-12, he

directed to allow proportionate deduction u/s.80IB(10).

Aggrieved thereby, the Revenue has come up in appeal before the

Tribunal.

4.

We have heard the rival submissions and gone through the

relevant material on record. It is seen that the question of grant of

proportionate deduction by the ld. CIT(A) in this appeal is based

on his decision taken for the A.Y. 2011-12. The said order of the

ld. CIT(A) came up for consideration before the Tribunal in the

assessee’s own case. Vide its order dated 19-05-2022, the

Tribunal in ITA No.2080/PUN/2017 has dismissed the Revenue’s

appeal on this score. The relevant discussion has been made in

paras 4 and 5 of the order. Respectfully following the coordinate

bench order in the assessee’s own case, which accords with the

consistent view taken by several hon’ble High courts granting

3 IT(SS) A.No.79/PUN/2019 M/s. Gera Realty Estates

deduction u/s.80IB(10) on proportionate basis under similar

circumstances, we do not find any reason to interfere with the

impugned order. The same is countenanced.

5.

In the result, the appeal is dismissed. Order pronounced in the Open Court on 08th February,

2023.

Sd/- Sd/- (S.S. VISWANETHRA RAVI) (R.S.SYAL) JUDICIAL MEMBER VICE PRESIDENT पुणे Pune; िदनांक Dated : 08th February, 2023 सतीश

आदेश की �ितिलिप अ�ेिषत/Copy of the Order is forwarded to: अपीलाथ� / The Appellant; 1. ��थ� / The Respondent 2. 3. The CIT(A)-11, Pune 4. The Pr.CIT (Central), Pune 5. DR, ITAT, ‘A’ Bench, Pune गाड� फाईल / Guard file. 6.

आदेशानुसार/ BY ORDER,

// True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune

IT(SS) A.No.79/PUN/2019 M/s. Gera Realty Estates

Date 1. Draft dictated on 08-02-2023 Sr.PS 2. Draft placed before author 08-02-2023 Sr.PS 3. Draft proposed & placed before JM the second member 4. Draft discussed/approved by JM Second Member. 5. Approved Draft comes to the Sr.PS 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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