DY. COMMISSIONER OF INCOME-TAX CIRCLE-5 PUNE, PUNE vs. SURANA MUTHA BHANSALI DEVELOPERS, PUNE

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ITA 1359/PUN/2023Status: DisposedITAT Pune16 April 2024AY 2014-15Bench: SHRI SATBEER SINGH GODARA (Judicial Member), DR. DIPAK P. RIPOTE (Accountant Member)5 pages

In favour of the assessee: the Revenue'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, noting that a previous coordinate bench had already decided the issue of proportionate deduction for the same project in favor of the assessee. The Tribunal dismissed the Revenue's grounds regarding the open terrace issue as not having been adjudicated by the CIT(A).

What were the facts?

The Revenue appealed against the CIT(A)'s decision allowing a deduction under Section 80-IB(10) on a pro-rata basis for eligible residential units. The Revenue argued that the built-up area of some flats exceeded the prescribed limit and that open terraces should be included in the built-up area calculation.

What were the issues?

Whether the assessee is eligible for deduction under Section 80-IB(10) on a pro-rata basis for eligible units, and whether open terraces should be included in the built-up area calculation.

Which sections of the Income-tax Act were involved?

Section 80-IB(10)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PUNE “B” BENCH : PUNE

Before: SHRI SATBEER SINGH GODARA & DR. DIPAK P. RIPOTE

Hearing: 12.04.2024Pronounced: 16.04.2024

BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND DR. DIPAK P. RIPOTE, ACCOUNTANT MEMBER I.T.A.No.1359/PUN./2023 [E-APPEAL] Assessment Year 2014-2015 The DCIT, Circle-5, Surana Mutha Bhansali 3rd Floor, PMT Bldg., Developers, 236, Patil Plaza, Shankar Sheth Road, Near Saras Baugh, Mitra vs. Swargate, Pune – 411 037. Mangal Chowk, Pune – 411009 Maharashtra. Maharashtra. PAN ABGFS1894K (Appellant) (Respondent) For Revenue : Shri Abdhesh Kumar Jha For Assessee : Shri Rajiv Thakkar Date of Hearing : 12.04.2024 Date of Pronouncement : 16.04.2024 ORDER PER SATBEER SINGH GODARA, J.M. : This Revenue’s appeal for assessment year 2014-2015, rises against the National Faceless Appeal Centre [in short the “NFAC”] Delhi’s Din and Order No. ITBA/NFAC/S/250/2023- 24/1057118954(1), dated 17.10.2023, involving proceedings u/s.143(3) of the Income Tax Act, 1961 (in short “the Act”).

Heard both the parties. Case file perused.

2.

The Revenue pleads the following substantive grounds in the instant appeal :

1.

“On the facts and in the circumstances of the case and in law, the ld. CIT(A) was not justified in holding that the assessee was 2 ITA.No.1359/PUN./2023 eligible for deduction of Rs.2,48,05,458/- u/s 80-IB(10) of the Income-tax Act, 1961, on pro-rata basis when the built-up area of 40 Flats have exceeded the area of 1500 S. Ft., thereby violating the provisions contained in clause (c) of Section 80-1B of the Income-tax Act, 1961.

2. On the facts and in the circumstances of the case and in law, the ld.CIT(A) was not justified in holding that the area of terrace (open to sky), which was sold with flat and having private access is not to be included in computation of built-up area for calculating the built-up area for the purpose of clause (c) of Sec 80-IB(10) of I.T. Act, 1961.

3.

On the facts and in the circumstances of the case and in law, the ld. CIT(A) was not justified in holding that the assessee was eligible for deduction of Rs.2,48,05,458/- u/s 80-IB(10) of the Income-tax Act, 1961, ignoring the fact that the assessee has violated the provisions of the Section 80-IB(10) of the Income-tax Act, 1961 in respect of the Residential housing project known as "Shree Shantinagar" at S.No. 63, Hissa No. 1/3A, ¼, 1/5, 1/6, 1/7, Kondhawa Budnik, Pune-48.

4. The appellant craves leave to add, amend, or alter any ground(s) of appeal at the time of hearing before the Hon'ble Tribunal.”

3. Both the learned representatives next invited our attention to the CIT(A)'s detailed discussion upholding the 3 ITA.No.1359/PUN./2023 assessee’s sec.80IB(10) proportionate deduction claim confined to the eligible residential units only reading as under :

4.

Suffice to say, the clinching fact which has emerged during the course of hearing is that the instant sole issue of sec.80IB(10) deduction on proportionate basis, is no more res integra as the earlier learned coordinate bench’s order dated 16.10.2019 ITA.No.568/PUN./2017 pertaining to the very residential housing project viz., “Shree Shantinagar” has already rejected the Revenue’s very contentions.

4 ITA.No.1359/PUN./2023 5. Faced with the situation, learned DR vehemently argued that the Revenue is in appeal before the hon’ble jurisdictional high court against the above order. Be that as it may, the fact remains that there is no exception evident qua the instant sole issue of sec.80IB(10) deduction on proportionate basis in assessment year 2012-13 vis-à-vis the assessment year 2014-15 before us. We thus adopt judicial consistency to uphold the CIT(A)'s detailed discussion partly accepting the assessee’s impugned claim in above terms.

7.

Mr. Abdhesh Jha next tooks us to the Revenue’s 2nd to 4th substantive grounds that the CIT(A) has erred in law and on facts in deciding “open terrace” issue in assessee’s favour. We do not see any such adjudication in the CIT(A)'s detailed discussion which could leave the Revenue aggrieved. It’s 2nd to 4th substantive grounds stand rejected in very terms.

No other argument or ground has been pressed/raised before us.

8.

This Revenue’s appeal is dismissed in above terms.

Order pronounced in the open Court on 16.04.2024.

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