DCIT, BANGALORE vs. M/S SKYLINE CONSTRUCTION & HOUSING PVT. LTD., BANGALORE

These appeals are preferred by the revenue against the order of CIT(Appeals) on the common ground that the CIT(Appeals) has failed to appreciate the fact that relief u/s. 80IB(10) of the I.T. Act cannot be allowed to the projects, if one of the residential units exceeds 1500 sq.ft.

During the course of hearing of the appeals, the ld. counsel for the assessee has invited our attention that the CIT(Appeals) has adjudicated the issue in the light of decision of the Tribunal in the case of Brigade Enterprises, 119 TTJ Bang 269. This order of the Tribunal was approved by the Hon’ble High Court of Karnataka. Copy of the judgment of the Hon’ble High Court is placed on record, in which the following question was referred to the Hon’ble High Court for consideration:- “Whether the Appellate Authorities were correct in holding that the assessee would be entitled to claim deduction u/s. 80IB(10) of the Act in respect of its Millennium project despite the assessee not satisfying the conditions stipulated in Clauses (a) to (d) of Section 80IB(10) of the Act?”

The question referred to the Hon’ble High Court was answered in favour of the assessee and against the revenue.

Since the CIT(Appeals) has adjudicated the issue following the order of the Tribunal which was later on approved by the jurisdictional High Court, we find no infirmity in the order of CIT(Appeals). Accordingly, we confirm the same.