COMMISSIONER OF INCOME TAX vs. M/S. OCEANUS DWELLINGS PVT. LTD

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ITA/290/2013HC KarnatakaKAHC01026818201322 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 upholding the order of the CIT(Appeals) to allow proportionate deduction under Section 80IB. 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 allowing proportionate deduction under Section 80IB for units with built-up area below 1500 sq.ft. The assessee claimed deduction on profits derived from sale of residential units, including those below the specified area.

What were the issues?

Whether proportionate deduction under Section 80IB is allowable for units with built-up area below 1500 sq.ft. and if the deduction is project-based or unit-based.

Which sections of the Income-tax Act were involved?

Section 80IB

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.290 OF 2013

BETWEEN:

1.

COMMISSIONER OF INCOME TAX

BANGALORE-III, BANGALORE.

2.

DY. COMMISSIONER OF INCOME TAX

CIRCLE-12(2), BANGALORE. ... APPELLANTS (BY SRI. E.I. SANMATHI, ADV.,)

AND:

M/S. OCEANUS DWELLINGS PVT LTD., NO.297, I FLOOR, I CROSS, 7TH MAIN BTM II STAGE, BANGALORE-560076. ... RESPONDENT (BY SRI. CHYTHANYA K.K. ADV.,) - - -

THIS I.T.A. IS FILED UNDER SECTION 260-A OF I.T.ACT, 1961, ARISING OUT OF ORDER DATED 06-02-2013 PASSED IN ITA NO.376/BANG/2012, FOR THE ASSESSMENT YEAR 2008-09, PRAYING TO: I. FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN.

II. ALLOW THE APPEAL AND SET ASIDE THE ORDER OF THE ITAT, BANGALORE IN APPEAL PROCEEDINGS ITA NO.376/BANG/2012 DATED 06-02-2013 AND ORDER OF THE COMMISSIONER OF INCOME TAX, (APPEALS)-III, BANGALORE IN APPEAL ITA NO.106/C-12(2)/CIT(A)-III/10- 11 DATED 05-12-2011.

THIS I.T.A. 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 14.08.2013 on the following substantial questions of law: (i) Whether in the given facts and circumstances of the case, the Tribunal was right in upholding the order of the Commissioner of Income Tax (Appeals) in directing the Assessing Officer to allow proportionate deduction under Section 80IB to the extent of profits attributable to the units, where the

built up area is below 1500 sq.ft.?

(ii) Whether in the given facts and circumstances of the case, the Tribunal was right in law in holding that the assessee is entitled to claim deduction under Section 80IB in respect of profits derived from sale of residential units, wherein the built up area is below 1500 sq.ft. without appreciating the fact

that the deduction under Section 80IB(10) is project based rather than unit and there is no concept of proportionate deduction under Section 80IB(10)?

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

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