INCOME TAX OFFICER 33(1)(1), MUMBAI vs. ARIHANT BUILDERS AND DEVELOPERS, MUMBAI

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ITA 4387/MUM/2017Status: DisposedITAT Mumbai27 May 2019AY 2012-133 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 followed its own previous order in the assessee's own case and the Bombay High Court's decision, holding that the deduction under Section 80IB(10) was allowable. The Revenue's appeal was dismissed.

What were the facts?

The assessee, a builder and developer, claimed deduction under Section 80IB(10) for AY 2012-13. The Assessing Officer disallowed the claim as the project completion certificate was granted after the stipulated five-year period from project approval.

What were the issues?

Whether the deduction under Section 80IB(10) is allowable when the project completion certificate is obtained after the prescribed five-year period from the financial year of approval.

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, MUMBAI BENCH “A” MUMBAI

Before: SHRI MAHAVIR SINGH & SHRI N.K. PRADHAN

For Appellant: Mr. Bhupendra Shah, AR
For Respondent: Mr. B.S. Bist, DR, Mr. Bhupendra Shah, AR
Hearing: 09/05/2019Pronounced: 27/05/2019

ORDER PER N.K. PRADHAN, A.M. This is an appeal filed by the Revenue. The relevant assessment year is 2012-13. The appeal is directed against the order of the Commissioner of Income Tax (Appeals)-45, Mumbai [in short ‘CIT(A)’] and arises out of the assessment completed u/s 143(3) of the Income Tax Act 1961, (the ‘Act’).

M/s Arihant Builders 2 4387/Mum/2017 2. The ground of appeal filed by the revenue reads as under: On the facts and circumstances of the case an in law, the Ld. CIT(A) erred in allowing the claim u/s 80IB(10) without appreciating the fact that as per the provisions of the sub-section (iii) of section 80IB(10) of the I.T. Act, 1961, the project should be completed within five years from the end of the financial year, in which the housing project is approved by the local Authority.

3. Briefly stated, the assessee is a partnership firm engaged in the business of builder and developers. It filed its return of income for the assessment year (AY) 2012-13 on 24.09.2012 declaring total income at Rs. Nil. It claimed deduction of Rs.1,60,52,280/- u/s 80IB(10) of the Act. During the course of assessment proceedings, the AO noticed that as per the commencement certificate, the assessee started its construction on 12.08.2005 and as per the provisions of section 80IB(10), the assessee had to complete the project on or before 31.03.2011, however, the completion certificate was granted by the local authority on 08.01.2013. Thus the AO concluded that since the project was not completed on or before 31.03.2011, the assessee was not eligible for deduction u/s 80IB(10).

4. In appeal, the Ld. CIT(A) followed the order of his predecessor-in- office for AY 2009-10 and AY 2010-11 and facts being similar allowed the appeal filed by the assessee.

5. Before us, the Ld. DR relies on the order of the AO whereas the Ld. counsel of the assessee, relying on the order of the ITAT ‘A’ Bench, Mumbai in assessee’s own case for AY 2010-11 (ITA No. 4105/M/2015)

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