ITO WD 3(1), THANE vs. NCC SMC INDU JV, THANE

This appeal filed by the Revenue on 4.12.2014 is against the order of the CIT (A)-1, Mumbai dated 8.8.2014 for the assessment year 2010-2011. In this appeal, Revenue raised the solitary ground which reads as under:- “On the facts and in the circumstances of the case and in law, the Ld CIT (A)-I, Thane has not appreciated the facts and deleted the addition made u/s 80IA(4).”

Briefly stated relevant facts of the case are that the assessee filed the return of income declaring the total income of Rs. NIL after claiming deduction u/s 80IA(4) of the Act amounting to Rs. 1,39,98,216/-. AO completed the assessment u/s 143(3) of the Act, wherein the said deduction was disallowed and determined the assessed income at Rs. 1,39,98,216/-. Aggrieved, assessee carried the matter in appeal before the first appellate authority. 3. During the proceedings before the first appellate authority, after considering the submissions of the assessee, CIT (A) granted relief and directed the AO to allow the claim. Aggrieved with the said decision of the CIT (A), Revenue is in appeal before the Tribunal by raising the above mentioned ground.

During the proceedings before the Tribunal, at the outset Ld Counsel for the assessee mentioned that the only issue raised in this appeal relates to the allowability of deduction u/s 80IA(4) of the Act qua the issue if the assessee is a developer or not. In this regard, Ld Counsel for the assessee submitted that an identical issue came up for adjudication before the Tribunal in the preceding AY 2009-2010, vide dated 3.2.2016, wherein the Tribunal decided the issue in favour of the assessee vide paras 7 and 8 of its order.

After hearing both the parties and on perusal of the orders of the Revenue Authorities as well as the cited decision of the Tribunal in the assessee‟s own case for the AY 2009-2010 (supra), we find, paras 7 and 8 of the said Tribunals order (supra) are relevant in this regard. For the sake of completeness of this order, the same are extracted as under:-