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Income Tax Appellate Tribunal, MUMBAI BENCH “I”, MUMBAI
Before: SHRI G.S. PANNU & SHRI AMARJIT SINGH
The captioned appeal by the Revenue is directed against the order of CIT(A)-41, Mumbai dated 23.04.2015, pertaining to the Assessment Year 2008-09, which in turn has arisen from the order passed by the Assessing Officer dated 31.01.2014 under section 143(3) r.w.s. 147 of the Income Tax Act, 1961 (in short ‘the Act’).
In this appeal, Revenue has raised the following two Grounds of appeal :
“1. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in holding that the project did not require to be completed as per the provisions of section 80IB(10)(a).
2. On the facts and circumstances of the case and in law, the Ld. CIT(A) erred in not deciding on whether the approval of the Gram Panchayat can be regarded as a completion certificate in the light of CIDCO having approved the project.”
At the time of hearing none appeared on behalf of the assessee, therefore, we proceed to decide the appeal ex parte qua the assessee after hearing the Ld. DR on merits in the light of the provisions of Rule 25 of the Income Tax (Appellate Tribunal) Rules, 1963.
Although Revenue has raised two Grounds of appeal, the solitary issue relates to the claim of assessee for deduction u/s 80IB(10) of the Act of Rs.1,65,77,646/- with respect to profits earned from the development of a housing project.
5. Briefly put, the relevant facts are that the respondent-assessee is a partnership firm which is engaged in the business of developers and builders. Initially, in the course of assessment proceedings for Assessment Year 2009-10, the Assessing Officer examined assessee’s claim for deduction u/s 80IB(10) of the Act in relation to the housing project undertaken by the assessee in Vasai-Virar region of Thane District. The Assessing Officer denied the claim of deduction in the assessment proceedings finalized u/s 143(3) of the Act. Following his stand in Assessment Year 2009-10, the Assessing Officer reopened the assessment for the instant Assessment Year of 2008-09 wherein also assessee had claimed deduction u/s 80IB(10) of the Act on the same project. Accordingly, in the impugned assessment, the Assessing Officer disallowed the claim of deduction u/s 80IB(10) of the Act following his stand for Assessment Year 2009-10.
6. In appeal before the CIT(A), it was pointed out that the matter relating to the claim of deduction u/s 80IB(10) of the Act for Assessment Year 2009-10 had travelled to the Tribunal and vide dated 22.9.2014 claim of the assessee stood allowed. The CIT(A) also took note of the fact that even for Assessment Year 2010-11 the Tribunal vide ITA No. 5554/Mum/2014 dated 5.1.2015 followed its earlier decision for Assessment Year 2009-10 and allowed the claim of the assessee for deduction u/s 80IB(10) of the Act. Accordingly, assessee’s claim for deduction u/s 80IB(10) of the Act was allowed. Against such a decision, Revenue is in appeal before us.
7. At the time of hearing, the Ld. DR appearing for the Revenue quite fairly stated that the order of the CIT(A) is based on the decision of the Tribunal in assessee’s own case relating to a similar claim u/s 80IB(10) of the Act. There is also no material on record to suggest that any of the aforesaid precedents have been altered by any higher authority. Therefore, under these circumstances we find no reason to interfere with the conclusion drawn by the CIT(A), which is based on the precedents in the assessee’s own case. Therefore, the order of the CIT(A) is affirmed and Revenue fails in its appeal.
Resultantly, appeal of the Revenue is dismissed.
Order pronounced in the open court on 17th August, 2016.