THE COMMISSIONER OF INCOME TAX vs. M/S BRIGADE ENTERPRISES LTD

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 22ND DAY OF SEPTEMBER 2020

PRESENT

THE HON’BLE MR. JUSTICE ALOK ARADHE

AND

THE HON’BLE MR. JUSTICE H.T.NARENDRA PRASAD

I.T.A. NO.55/2013 BETWEEN:

... APPELLANTS (BY SRI. K.V. ARAVIND, ADV.,)

AND:

M/S. BRIGADE ENTERPRISES LTD., PENT HOUSE, BRIGADE TOWERS NO.135, BRIGADE TOWERS BANGALORE-560025. ... RESPONDENT (BY SRI. CHYTHANYA K.K. ADV.) - - -

THIS ITA IS FILED UNDER SECTION 260-A OF I.T. ACT, 1961 ARISING OUT OF ORDER DATED 07.09.2012 PASSED IN ITA NO.1357/BANG/2010 FOR THE ASSESSMENT YEAR 2008-09, PRAYING THAT THIS HON’BLE COURT MAY BE PLEASED TO: (I) FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN.

(I) ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY THE ITAT, BANGALORE IN ITA NO.1357/BANG/2010 DATED 07-09-2012 CONFIRMING THE ORDER OF THE APPELLATE COMMISSIONER AND CONFIRM THE ORDER PASSED BY THE DEPUTY COMMISSIONER OF INCOME TAX OFFICER, CIRCLE-11(2), BANGALORE.

THIS ITA COMING ON FOR FURTHER HEARING, THIS DAY, ALOK ARADHE J., DELIVERED THE FOLLOWING:

JUDGMENT

This appeal under Section 260A of the Income Tax Act, 1961 (hereinafter referred to as the Act for short) has been preferred by the revenue. The subject matter of the appeal pertains to the Assessment year 2008-09. The appeal was admitted by a bench of this Court vide order dated 07.06.2013 on the following substantial questions of law: (i) Whether the appellate authorities were correct in holding that the assessee firm is eligible for deduction under Section 80IB(10) of the Income-Tax Act without appreciating that the assessee has not satisfied the requirements as laid down in clauses (a) to (d) of sub-Section (1) of Section 80IB(10) of the Act?

(ii) Whether the appellate authorities were correct in allowing proportionate deduction under Section 80IB(10) in respect of the individual units measuring less than 1,500 sq.ft. contrary to the provisions of Section 80IB(10) of the Act, when Section contemplates fulfillment of condition of less than 1500 sq.ft. in respect of the entire project?

(iii) Whether the appellate authorities were correct in holding that the assessee is entitled to deduction under Section 80IB(10) of the Act, admittedly when the commercial area in the project was more than 5% by holding that each residential block has to be taken into consideration for computing percentage of commercial area, when the provision contemplates fulfillment of conditions for the entire project and recorded a perverse finding?

questions of law are answered against the revenue and in favour of the assessee.

In the result, the appeal fails and is hereby dismissed.

Sd/- JUDGE

Sd/- JUDGE ss