CIT v. H.P.Housing Board

340 ITR 388High Court2012#7862 most cited

What is CIT v. H.P.Housing Board authority for?

Each clause under Section 36(1) of the Income Tax Act operates independently and does not rely on other clauses for the benefit to be extended. This principle is illustrated by a housing board liable to pay interest on delayed possession under a self-financing scheme.

14

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2015 to 2025.

Also referred to as

CIT v. H.P. Housing Board · Section 36(1) · independent clauses · Section 36 · interest on deposits · housing scheme

Sections most often in play

Section 143(3)Section 14ASection 158ASection 36(1)(vii)Section 36(1)(viia)Section 36(1)(viii)Section 115JBSection 194A

Issues it is cited on

section 14a(3)section 36(l)(vii)section 36(1)(viia)(c)section 158asection 2(28a)purposive interpretationsection 36(1)(viii)section 36(2)section 36(1)(viia)section 14a(2)infrastructure facilitysection 36(1)(vii)

Judgments citing CIT v. H.P.Housing Board

Dy. Commissioner of Income Tax Circle - 3(3)(1), Mumbai vs. Small Industries Development Bank of India, Mumbai

ITA 3173/MUM/2023[2018-19]Status: DisposedITAT Mumbai10 Oct 2025AY 2018-19

Bench: Justice (Retd.) C V Bhadang & Ms Padmavathy S, Am

Section 115JSection 14ASection 250Section 36(1)Section 36(1)(vii)Section 36(1)(viia)Section 36(1)(viii)

…section (1) of Section 36 is independent in its operation and each one of them does not depend upon the other for the extension of the benefit. 26. The learned counsel for the respondent relied on CIT. H.P. Housing Board [2012] 18 taxmann.com 129/205 Taxman 1/340 ITR 388 (HP). The facts in that case are as follows:- "The Assessee-housing board had floated a self financing scheme for sale of houses/flats wherein the allottees were required to deposit some amount with the assessee and construction was to be carried out of these amounts. One of the 18 ITA 2943-2894-2893-3160-3173/M/2023 & 2971-2970/M/2023 Small Indu…

Dy. Commissioner of Income Tax Circle - 3(3)(1), Mumbai vs. Small Industries Development Bank of India, Mumbai

ITA 3160/MUM/2023[2017-18]Status: DisposedITAT Mumbai10 Oct 2025AY 2017-18

Bench: Justice (Retd.) C V Bhadang & Ms Padmavathy S, Am

For Respondent: Shri Arun Kanti Datta, CIT-DR
Section 115JSection 14ASection 250Section 36(1)Section 36(1)(vii)Section 36(1)(viia)

…section (1) of Section 36 is independent in its operation and each one of them does not depend upon the other for the extension of the benefit. 26. The learned counsel for the respondent relied on CIT. H.P. Housing Board [2012] 18 taxmann.com 129/205 Taxman 1/340 ITR 388 (HP). The facts in that case are as follows:- "The Assessee-housing board had floated a self financing scheme for sale of houses/flats wherein the allottees were required to deposit some amount with the assessee and construction was to be carried out of these amounts. One of the 18 ITA 2943-2894-2893-3160-3173/M/ 2023 & 2971-2970/M/ 2023 Small I…

Small Industries Development Bank of India, Mumbai vs. Deputy Commissioner of Income Tax Circle 3(3)(1), Mumbai

ITA 2971/MUM/2023[2017-18]Status: DisposedITAT Mumbai10 Oct 2025AY 2017-18

Bench: Justice (Retd.) C V Bhadang & Ms Padmavathy S, Am

For Appellant: Shri Arun Kanti Datta, CIT-DRFor Respondent: Assessee by
Section 115JSection 14ASection 250Section 36(1)Section 36(1)(vii)Section 36(1)(viia)Section 36(1)(viii)

…section (1) of Section 36 is independent in its operation and each one of them does not depend upon the other for the extension of the benefit. 26. The learned counsel for the respondent relied on CIT. H.P. Housing Board [2012] 18 taxmann.com 129/205 Taxman 1/340 ITR 388 (HP). The facts in that case are as follows:- "The Assessee-housing board had floated a self financing scheme for sale of houses/flats wherein the allottees were required to deposit some amount with the assessee and construction was to be carried out of these amounts. One of the conditions of the allotment was that in case the possession of the h…

Small Industries Development Bank of India, Mumbai vs. Deputy Commissioner of Income Tax Circle 3(3)(1), Mumbai

ITA 2970/MUM/2023[2018-19]Status: DisposedITAT Mumbai10 Oct 2025AY 2018-19

Bench: Justice (Retd.) C V Bhadang & Ms Padmavathy S, Am

For Respondent: Shri Arun Kanti Datta, CIT-DR
Section 115JSection 14ASection 250Section 36(1)Section 36(1)(vii)Section 36(1)(viia)

…section (1) of Section 36 is independent in its operation and each one of them does not depend upon the other for the extension of the benefit. 26. The learned counsel for the respondent relied on CIT. H.P. Housing Board [2012] 18 taxmann.com 129/205 Taxman 1/340 ITR 388 (HP). The facts in that case are as follows:- "The Assessee-housing board had floated a self financing scheme for sale of houses/flats wherein the allottees were required to deposit some amount with the assessee and construction was to be carried out of these amounts. One of the 18 ITA 2943-2894-2893-3160-3173/M/ 2023 & 2971-2970/M/ 2023 Small I…

Dy. Commissioner of Income Tax Circle - 3(3)(1), Mumbai vs. Small Industries Development Bank of India, Mumbai

ITA 2943/MUM/2023[2014-15]Status: DisposedITAT Mumbai10 Oct 2025AY 2014-15

Bench: Justice (Retd.) C V Bhadang & Ms Padmavathy S, Am

For Respondent: Shri Arun Kanti Datta, CIT-DR
Section 115JSection 14ASection 250Section 36(1)Section 36(1)(vii)Section 36(1)(viia)

…section (1) of Section 36 is independent in its operation and each one of them does not depend upon the other for the extension of the benefit. 26. The learned counsel for the respondent relied on CIT. H.P. Housing Board [2012] 18 taxmann.com 129/205 Taxman 1/340 ITR 388 (HP). The facts in that case are as follows:- "The Assessee-housing board had floated a self financing scheme for sale of houses/flats wherein the allottees were required to deposit some amount with the assessee and construction was to be carried out of these amounts. One of the 18 ITA 2943-2894-2893-3160-3173/M/ 2023 & 2971-2970/M/ 2023 Small I…

Dy. Commissioner of Income Tax Circle - 3(3)(1), Mumbai vs. Small Industries Development Bank of India, Mumbai

ITA 2894/MUM/2023[2015-16]Status: DisposedITAT Mumbai10 Oct 2025AY 2015-16

Bench: Justice (Retd.) C V Bhadang & Ms Padmavathy S, Am

For Respondent: Shri Arun Kanti Datta, CIT-DR
Section 115JSection 14ASection 250Section 36(1)Section 36(1)(vii)Section 36(1)(viia)

…section (1) of Section 36 is independent in its operation and each one of them does not depend upon the other for the extension of the benefit. 26. The learned counsel for the respondent relied on CIT. H.P. Housing Board [2012] 18 taxmann.com 129/205 Taxman 1/340 ITR 388 (HP). The facts in that case are as follows:- "The Assessee-housing board had floated a self financing scheme for sale of houses/flats wherein the allottees were required to deposit some amount with the assessee and construction was to be carried out of these amounts. One of the 18 ITA 2943-2894-2893-3160-3173/M/ 2023 & 2971-2970/M/ 2023 Small I…

Dy. Commissioner of Income Tax Circle - 3(3)(1), Mumbai vs. Small Industries Development Bank of India, Mumbai

ITA 2893/MUM/2023[2016-17]Status: DisposedITAT Mumbai10 Oct 2025AY 2016-17

Bench: Justice (Retd.) C V Bhadang & Ms Padmavathy S, Am

For Appellant: Shri Arun Kanti Datta, CIT-DR
Section 115JSection 14ASection 250Section 36(1)Section 36(1)(vii)Section 36(1)(viia)Section 36(1)(viii)

…ection (1) of Section 36 is independent in its operation and each one of them does not depend upon the other for the extension of the benefit. 26. The learned counsel for the respondent relied on CIT. H.P. Housing Board [2012] 18 taxmann.com 129/205 Taxman 1/340 ITR 388 (HP). The facts in that case are as follows:- "The Assessee-housing board had floated a self financing scheme for sale of houses/flats wherein the allottees were required to deposit some amount with the assessee and construction was to be carried out of these amounts. One of the conditions of the terms of allotment was that in case the possessio…

Atul Sharma, New Delhi vs. ITO, New Delhi

In the result, appeal of the assessee is allowed

ITA 5803/DEL/2013[2010-11]Status: DisposedITAT Delhi12 Sept 2024AY 2010-11

Bench: Sh. Challa Nagendra Prasad & Sh. M.Balaganeshmr. Atul Sharma Vs. Ito 207, Lawyers Chamber Circle – 37(1) Delhi High Court, New Delhi New Delhi-110 003 Pan No. Aarps 6964 J (Appellant) (Respondent) Assessee By Dr. Rakesh Gupta, Adv., Mr. Audhisthir Mehtani, Adv., Mr. Somil Aggarwal, Adv. & Shri Shrey Jain, Adv. Revenue By Shri Kanv Bali, Sr. D.R. & Shri Vivek Vardhan, Sr.D.R. Date Of Hearing: 05.07.2024 Date Of Pronouncement: 12.09.2024 Order Per M. Balaganesh:

Section 143(3)Section 57

…t is chargeable to tax or not in the hands of the assessee. This issue is no longer res integra in view of the decision of Hon’ble Himachal Pradesh High Court which are heavily relied upon by the learned AR in the case of H.P. Housing Board reported in (2012) 340 ITR 388 (HP) wherein the question that was raised before the Hon’ble High Court is as under:- Atul Sharma vs. ITO 6 "1. Whether on the facts and in the circumstances of the case the Hon'ble Tribunal was right in law that the interest paid/credited by the Housing Board on the amount deposited by the allottees on account of delayed allotment of flats does…

M/S Kolte Patil Developers Ltd, Pune vs. DCIT, Circle-7, Pune

In the result, the appeal filed by the assessee is allowed

ITA 704/PUN/2024[2014-15]Status: DisposedITAT Pune12 Aug 2024AY 2014-15

Bench: Shri R. K. Panda & Shri Vinay Bhamoreassessment Year : 2014-15

For Appellant: Shri Nikhil S PathakFor Respondent: Shri Ramnath P Murkende
Section 143(2)Section 40Section 43C

…ed in the negative by holding that before any amount paid is construed as interest, it has to be established that the same is payable in respect of any money borrowed or debt incurred. Commissioner of Income-tax, Shimla v. M/s.HP Housing Board, Shimla [(2012) 340 ITR 388] is a case where the question considered was whether interest paid/credited by the Housing Board on the amount deposited by the allottees on account of delayed allotment of flats is covered by section 2 (28A). This again was answered by the Himachal Pradesh High Court following the Apex Court judgment in Bikram Singh (supra). Commissioner of Inco…

ACIT, Circle- 27(1), New Delhi vs. U K Paints India Pvt. Ltd., New Delhi

In the result, appeal of Revenue for A

ITA 764/DEL/2018[2014-15]Status: DisposedITAT Delhi16 Jun 2023AY 2014-15

Bench: Sh. Anil Chaturvedi & Sh. Anubhav Sharmaacit Vs. M/S. U. K. Paints (India) Pvt. Central Circle – 10 Ltd., 19, Dda Commercial New Delhi Complex, Kailash Colony Extn., Zamrudpur, New Delhi - 48 Pan No. Aaacu 0057 C (Appellant) (Respondent) & Co No. 244/Del/2013 (Arising Out Of Ita No.4115/Del/2013) (For Assessment Year : 2008-09) M/S. U. K. Paints (India) Vs. Acit Pvt. Ltd., 19, Dda Central Circle – 10 Commercial Complex, New Delhi Kailash Colony Extn., Zamrudpur, New Delhi-48 Pan No. Aaacu 0057 C (Appellant) (Respondent) & Acit Vs. U. K. Paints (India) Pvt. Ltd. Circle – 27(1) 19, Dda Commercial New Delhi Complex, Kailash Colony Extn., Zamrudpur, New Delhi-48 Pan No. Aaacu 0057 C (Appellant) (Respondent)

Section 143(3)Section 14ASection 80I

…ce this compensation in substance is akin to liquidated damages and compensation received by a buyer who is not allotted/delivered flat as per agreed time schedule, is held to capital receipt by Himachal Pradesh High Court in case of CIT vs H.P. Housing Board 340 ITR 388 “1. Whether, on the facts and in the circumstances of the case, the Hon’ble Tribunal was right in law that the interest paid/credited by the Housing Board on the amount deposited by the allottees on account of delayed allotment of flats does not fall under the definition of interest as assigned to it in clause (28A) of section 2 of the Income-tax…

ACIT, New Delhi vs. M/S U.K. Paints (India) Pvt. Ltd., New Delhi

In the result, appeal of Revenue for A

ITA 4115/DEL/2013[2008-09]Status: DisposedITAT Delhi16 Jun 2023AY 2008-09

Bench: Sh. Anil Chaturvedi & Sh. Anubhav Sharmaacit Vs. M/S. U. K. Paints (India) Pvt. Central Circle – 10 Ltd., 19, Dda Commercial New Delhi Complex, Kailash Colony Extn., Zamrudpur, New Delhi - 48 Pan No. Aaacu 0057 C (Appellant) (Respondent) & Co No. 244/Del/2013 (Arising Out Of Ita No.4115/Del/2013) (For Assessment Year : 2008-09) M/S. U. K. Paints (India) Vs. Acit Pvt. Ltd., 19, Dda Central Circle – 10 Commercial Complex, New Delhi Kailash Colony Extn., Zamrudpur, New Delhi-48 Pan No. Aaacu 0057 C (Appellant) (Respondent) & Acit Vs. U. K. Paints (India) Pvt. Ltd. Circle – 27(1) 19, Dda Commercial New Delhi Complex, Kailash Colony Extn., Zamrudpur, New Delhi-48 Pan No. Aaacu 0057 C (Appellant) (Respondent)

Section 143(3)Section 14ASection 80I

…ce this compensation in substance is akin to liquidated damages and compensation received by a buyer who is not allotted/delivered flat as per agreed time schedule, is held to capital receipt by Himachal Pradesh High Court in case of CIT vs H.P. Housing Board 340 ITR 388 “1. Whether, on the facts and in the circumstances of the case, the Hon’ble Tribunal was right in law that the interest paid/credited by the Housing Board on the amount deposited by the allottees on account of delayed allotment of flats does not fall under the definition of interest as assigned to it in clause (28A) of section 2 of the Income-tax…

West Bengal Housing Development Corporation Ltd., Kolkata vs. The I.T.O, Ward-11(1), Kolkata

In the result ITA No.213/Kol/2012 of the revenue is partly allowed

ITA 1739/KOL/2013[2005-06]Status: DisposedITAT Kolkata02 Dec 2015AY 2005-06

Bench: Hon’Ble Shri N.V.Vasudevan, Jm & Shri Waseem Ahmed, Am ] Assessment Year : 2005-06

For Appellant: Shri Sanjay Bhattacharya, FCAFor Respondent: Shri Niraj Kumar, CIT(DR)
Section 194ASection 40

…re the same cannot be characterised as interest. Consequently there was no obligation on the part of the assessee to deduct tax at source u/s 194A of the Act. The ld. Counsel placed reliance on the following two decisions :- i) CIT vs H.P.Housing Board (2012) 340 ITR 388 (HP) ii) Ghaziabad Development Authority vs Dfr. N.K.Gupta 258 ITR 337. In the case of H.P. Housing Board there was a delay in construction of house and therefore H.P.Housing Board paid interest to the allottees on the agreed rate in terms of the letter of allotment. The question before the Hon’ble Himachal Pradesh High Court was as to whether th…

DCIT, Circle - 11, Kolkata vs. M/S. West Bengal Housing Infrastructure Dev. Corpn. Ltd., Kolkata

In the result ITA No.213/Kol/2012 of the revenue is partly allowed

ITA 213/KOL/2012[2008-09]Status: DisposedITAT Kolkata02 Dec 2015AY 2008-09

Bench: Hon’Ble Shri N.V.Vasudevan, Jm & Shri Waseem Ahmed, Am ] Assessment Year : 2005-06

For Appellant: Shri Sanjay Bhattacharya, FCAFor Respondent: Shri Niraj Kumar, CIT(DR)
Section 194ASection 40

…re the same cannot be characterised as interest. Consequently there was no obligation on the part of the assessee to deduct tax at source u/s 194A of the Act. The ld. Counsel placed reliance on the following two decisions :- i) CIT vs H.P.Housing Board (2012) 340 ITR 388 (HP) ii) Ghaziabad Development Authority vs Dfr. N.K.Gupta 258 ITR 337. In the case of H.P. Housing Board there was a delay in construction of house and therefore H.P.Housing Board paid interest to the allottees on the agreed rate in terms of the letter of allotment. The question before the Hon’ble Himachal Pradesh High Court was as to whether th…

West Bengal Housing Infrastructure Development Corporation Ltd., Kolkata vs. ITO, Ward - 11(1), Kolkata

In the result ITA No.213/Kol/2012 of the revenue is partly allowed

ITA 113/KOL/2012[2008-09]Status: DisposedITAT Kolkata02 Dec 2015AY 2008-09

Bench: Hon’Ble Shri N.V.Vasudevan, Jm & Shri Waseem Ahmed, Am ] Assessment Year : 2005-06

For Appellant: Shri Sanjay Bhattacharya, FCAFor Respondent: Shri Niraj Kumar, CIT(DR)
Section 194ASection 40

…re the same cannot be characterised as interest. Consequently there was no obligation on the part of the assessee to deduct tax at source u/s 194A of the Act. The ld. Counsel placed reliance on the following two decisions :- i) CIT vs H.P.Housing Board (2012) 340 ITR 388 (HP) ii) Ghaziabad Development Authority vs Dfr. N.K.Gupta 258 ITR 337. In the case of H.P. Housing Board there was a delay in construction of house and therefore H.P.Housing Board paid interest to the allottees on the agreed rate in terms of the letter of allotment. The question before the Hon’ble Himachal Pradesh High Court was as to whether th…

CIT v. H.P.Housing Board (340 ITR 388) — Cited in 14 Judgments | BharatTax