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

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ITA/64/2014HC KarnatakaKAHC01046734201422 September 2020Bench: ALOK ARADHE,H.T. NARENDRA PRASAD4 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the Tribunal was right in dismissing the miscellaneous petition. The substantial questions of law were answered against the revenue and in favour of the assessee.

What were the facts?

The Revenue appealed against an ITAT order that dismissed their miscellaneous petition. The core issue revolved around the eligibility for deduction under Section 80IB(10) for Assessment Years 2007-08 and 2008-09, specifically concerning the built-up area of residential units.

What were the issues?

Whether the Tribunal correctly dismissed the revenue's miscellaneous petition and whether units with built-up areas exceeding 1500 sq. feet are eligible for deduction under Section 80IB(10).

Which sections of the Income-tax Act were involved?

Section 80IB(10),Section 260A

AI-generated summary — verify with the full judgment below

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.64/2014 BETWEEN:

1.

THE COMMISSIONER OF INCOME-TAX C.R. BUILDING, QUEENS ROAD BANGALORE.

2.

THE DEPUTY COMMISSIONER OF INCOME-TAX CIRCLE-11(2), RASHTROTHANA BHAVAN NRUPATHUNGA ROAD, BANGALORE-560001.

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

AND:

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

THIS ITA IS FILED UNDER SECTION 260-A OF I.T. ACT, 1961 ARISING OUT OF ORDER DATED 30.08.2013 PASSED IN M.P.NO.42/BANG/2013 IN ITA NO.1356 & 1357/BANG/2010 FOR THE ASSESSMENT YEAR 2007-08 & 2008-09, PRAYING THAT THIS HON’BLE COURT MAY BE PLEASED TO: (I) FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED ABOVE.

(I) ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY THE ITAT, BANGALORE MP NO.42/BANG/2013 IN ITA NO.1356 & 1357/BANG/2010 DATED 30-08-2013 CONFIRMING THE ORDER OF THE APPELLATE COMMISSIONER AND CONFIRM THE ORDER PASSED BY THE DEPUTY COMMISSIONER OF INCOME TAX, 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 20.03.2015 on the following substantial questions of law: (i) Whether the Tribunal was right in dismissing miscellaneous petition filed by the revenue without appreciating the fact that the issue involved for Assessment Year 2004-05 was whether certain blocks in the project could be treated s individual and independent projects for the purpose of Section 80IB(10) and the issue involved for

Assessment Year 2007-08 and 2008-09 is whether individual blocks having flats of more than 1500 sq. feet of built up area are eligible for deduction under Section 80IB(10)?

(ii) Whether the Tribunal was right in holding that whenever built up area is more than 1500 sq. feet, the assessee would be entitled to deduction only proportionate to the profits attributable to the residential units which have a built up area of less than 1500 sq. feet and above by violating the provision of Section 80IB(10) of the Act?

2.

For the reasons assigned by us in the order passed today in ITA No.54/2013, the substantial 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

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