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Income Tax Appellate Tribunal, MUMBAI BENCH “H”, MUMBAI
This appeal by the assessee is directed against the order of the CIT(Appeal)-II, Thane dated 27/9/2010 for assessment year 2006-07.
In this appeal, the assessee has raised the following grounds:-
“1.The Id. CIT (Appeals) erred in confirming the addition of Rs.25,25,360/ made to the returned income of the appellant by disallowing the claim for deduction uls 80IB (10) of the I. Tax Act in respect of profit derived from the (Assessment Year : 2006-07) housing project developed by the appellant at Nalasopara (west), Dist. Thane. 2A. The Id. CIT (Appeals) failed to appreciate that the housing project developed by the appellant at Nalasopara (W), Dist. Thane was approved for development on 17.07.2003 and the provisions of section 80IB(10) as they stood in F.Y. 200304 did not provide for completion of construction before any particular date. 2B. Without prejudice, the CIT (A) erred in not appreciating the fact that the housing project developed by appellant fulfilled the conditions imposed by section 80IB (1O)(a)(i) with regards to completion of construction of the housing project prior to 31st March 2008 and hence the deduction u/s. 80IB (10) was correctly claimed.
The Id. CIT (Appeals) erred in rejecting the ground raised
by the appellant with regards to commercial establishments forming part of the housing project claiming deduction u/s. 80IB(l0) without adjudicating on the same in the appeal before him. 4A. The Id. CIT (Appeals) erred in sustammg the disallowance of the deduction claimed uls 80IB (10) of the I. Tax Act by holding that the appellant's project breached the conditions prescribed u/s 80 IB (10) as certain commercial establishments of 8383.85 sq. feet (built up area) were part of the housing project. 4B. The Id. CIT (Appeals) failed to appreciate that the amended provisions regarding restricted area of shops and other commercial establishments, operative w.e.f.01.04.2005 did not apply to the case of the appellant as the housing project of the appellant had commenced prior to the insertion of sub clause (d) to section 80 IB (10).
5. The appellant craves leave to add, alter, amend and/or vary the grounds of appeal/relief claimed at any time before the decision of the appeal.”
3. The assessee firm engaged in the business of builders and developers, filed its return of income for assessment year 2006-07 on 30/10/2006 declaring ‘Nil’ income after claiming deduction of Rs.25,25,360/- under section 80 IB(10) of the Income Tax Act, 1961(in short ‘the Act’). The case was taken up for scrutiny and the assessment was completed u/s.143(3) of the Act vide order dated 24/11/2008, wherein the income of the assessee was computed at Rs.25,25,360/- as (Assessment Year : 2006-07) against ‘Nil’ returned income, in view of the Assessing Officer disallowing the assessee’s claim for deduction u/s. 80 IB (10) of the Act.
3.2 On appeal, the CIT(A)-II, Thane vide order dated 25/8/2010 dismissed the assessee’s appeal, thereby upholding the Assessing Officer’s disallowance of the assessee’s claim for deduction u/s. 80 IB(10) of the Act.
Hearings of this appeal were initially fixed on 10/07/2013 and 26/8/2013. As the Bench did not function on those dates, the case was adjourned to 26/08/2013. On 26/08/2013, the case was adjourned to 28/10/2013 on the request of the Ld. AR of the assessee. Subsequently, the Bench did not function on 28/10/2013, 24/12/2013 and 08/04/2014. When the case was refixed for hearings on 4/6/2014, 21/08/2014, 1/10/2014, 10/2/2015,13/4/2015, 6/7/2015, 8/9/2015 and 20/10/2015, no one appeared on behalf of the assessee and the case was then adjourned to 17/11/2015. Today, i.e. on 17/11/2015, when the case was called for hearing, once again no one appeared on behalf of the assessee. Ms. Kusum Bansal, Ld. DR for the Revenue was, however present. In the circumstances laid out above, we proceed to dispose off this appeal with the help of the Ld. DR.
On a perusal of the grounds raised
in this appeal by the assessee(supra), the only issue raised therein challenges the denial of its claim for deduction u/s. 80IB(10) of the Act by the authorities below. After considering the submissions made by the Ld. DR and also the findings recorded by the authorities below rejecting the assessee’s claim for deduction u/s. 80. IB(10) of the Act, we find that the assessee has failed to rebut the findings of the authorities below that it was not (Assessment Year : 2006-07) entitled to be allowed the claimed of deduction of Rs.25,25,360/- u/s. 80 IB(10) of the Act. In that view of the matter, we uphold the finding of the Ld. CIT(A) in the impugned order disallowing the assessee’s claim for deduction u/s. 80 IB(10) of the Act and consequently dismiss the grounds at Sl.No.1 to 5 raised by the assessee.
In the result, assessee’s appeal for assessment year 2006-07 is dismissed.
Order pronounced in the open court on 17/11/2015.