AKASH CONSTRUCTION,THANE vs. ITO WD 4(1), THANE

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ITA 1037/MUM/2014Status: DisposedITAT Mumbai26 August 2016AY 2008-093 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the CIT(A)'s decision to deny the deduction under Section 80IB(10) because the project was developed on land less than one acre, which is a mandatory condition. The validity of reopening the assessment was also confirmed.

What were the facts?

The assessee claimed deduction under Section 80IB(10) for a housing project. The AO rejected the claim citing project incompletion by March 31, 2008, and land area below one acre. The CIT(A) accepted the project completion aspect based on a prior tribunal ruling but upheld the rejection due to the land area being less than one acre.

What were the issues?

Whether the assessee fulfilled the conditions for deduction under Section 80IB(10), specifically regarding the minimum land area, and whether the reopening of assessment was valid.

Which sections of the Income-tax Act were involved?

Section 80IB(10),Section 147

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” Bench, Mumbai

Before: Shri B.R. Baskaran (AM) & Shri Sanjay Garg (JM)

For Respondent: Shri A.B. Koli
Hearing: 22.8.2016Pronounced: 22.8.2016

O R D E R Per B.R. Baskaran (AM) :-

The appeal filed by the assessee is directed against the order dated 20.12.2013 passed by learned CIT(A)-II, Thane and it relates to A.Y. 2008-09.

2.

None appeared on behalf of the assessee. From the record we noticed that the Registry has sent notice of hearing on two occasions and both notices have been returned back by the postal department with the endorsement “unclaimed”. Hence, we proceed to dispose of the appeal ex-parte, without presence of the assessee.

3.

We have heard learned Departmental Representative and perused the record. The assessee is aggrieved by the decision of learned CIT(A) in rejecting the claim made by the assessee u/s. 80IB(10) of the Act.

4.

The assessee developed a housing project and claimed deduction u/s 80IB(10) of the Act. The AO rejected the claim on the following reasons :-

a) Project undertaken by the assessee has not been completed on or before 31.3.2008 b) Area of the land was below one acre.

5.

In the appellate proceedings, learned CIT(A) noticed that the Tribunal has considered the issue relating to completion of project in A.Y. 2006-07 and has decided the same in favour of the assessee, vide its order dated 17.7.2013 passed in ITA No. 5108/Mum/2011. Accordingly, by following the decision of the Tribunal, learned CIT(A) set aside the order of AO with regard to the first reasoning of rejection.

6.

With regard to the second reasoning given by the Assessing Officer, learned CIT(A) noticed that the area of plot on which project was developed was less than one acre, which violated one of the mandatory conditions prescribed for claiming deduction u/s 80IB(10) of the Act. Accordingly, he confirmed the order of the Assessing Officer, as the assessee did not fulfill the conditions for deduction with regard to the area of the land.

7.

Aggrieved, the assessee has filed this appeal before us. However, before us also, no material was placed by the assessee to contradict the findings given by learned CIT(A) on the issue of extent of land on which the project was developed. Hence, we do not have any other option, but to confirm the order passed by learned CIT(A).

8.

The assessee has also challenged the validity of reopening of the assessment u/s. 147 of the Act. We noticed that learned CIT(A) has upheld the validity of reopening and assessee has not furnished any material to contradict the findings given by learned CIT(A) on this issue. Accordingly, we uphold, the order passed by learned CIT(A) on this issue.

9.

In the result, appeal filed by assessee is dismissed.

Order has been pronounced in the Court on 22.8.2016

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