DLF CYBER CITY DEVELOPERS LTD.,GURGAON V. ADDL. CIT RANGE- I, GURGAON

MA 20/DEL/2024

AI Insights

The case involves DLF Cyber City Developers Ltd, the appellant, seeking to rectify typographical errors in a previous Tribunal order concerning the assessment year 2011-12. The errors pertained to the description of the lease income sources and the incorrect citation of the deduction section under the Income Tax Act. The Tribunal acknowledged the mistakes and corrected the references to accurately reflect the nature of the lease income and the applicable section for deductions.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 825092 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 11 month(s) 15 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 30-12-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 15-01-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AJAY KUMAR ARORA
• Assessee Lawyers: SATYAJEET GOEL
• Keywords: FORM 26AS

Judgement Text

"Page | 1 INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “B”: NEW DELHI BEFORE SHRI C. N. PRASAD, JUDICIAL MEMBER AND SHRI M. BALAGANESH, ACCOUNTANT MEMBER MA No. 20/Del/2024 (In ITA No. 3692/Del/2017 (Assessment Year: 2011-12) DLF Cyber City Developers Ltd, 3rd Floor, B Wing, Shopping Mall Complex, Arjun Marg, DLF City, Phase-1, Gurgaon, Haryana Vs. Addl. CIT, Range-1, Gurgaon (Appellant) (Respondent) PAN:AACCD3572H Assessee by : Shri Satya Jeet Goel, Adv Revenue by: Shri Ajay Kumar Arora, Sr. DR Date of Hearing 21/11/2025 Date of pronouncement 30/12/2025 O R D E R PER M. BALAGANESH, A. M.: 1. By virtue of this miscellaneous application, the assessee seeks to rectify the typographical errors that had crept in the order passed by this Tribunal in ITA No. 3692 / Del / 2017 for assessment year 2011-12 dated 29-11-2023. It is not in dispute that Assessee is operating an Industrial Park. 2. We find that in page 8 para 11 of the Tribunal order, it was mentioned in fourth line that Assessee had earned lease income from non-SEZ buildings and SEZ buildings. The Learned AR submitted that this is factually incorrect as the lease income has been derived from industrial park and non- industrial park and not from SEZ buildings and non-SEZ buildings. Hence, he sought for rectification of the same. Accordingly, the para 11 shall be read as under:- Printed from counselvise.com MA No. 20/Del/2024 DLF Cyber City Developers Ltd Page | 2 “11. The ld. AO classified the rental income and treated the rental income from notified buildings under the head “Profits or gains from business and profession‟ as against “income from house property” thereby resulting in adjustment of claim of deduction u/s 80IA of the Act. The ld AR submitted that the ld AO had accepted the taxation of lease income earned from non-industrial park under the head “income from house property” and dispute is only with reference to lease income from SEZ buildings as notified u/s 80IA of the Act. The ld AR submitted that the identity, nature and character of industrial park as well as non- industrial park buildings are same and that the lease agreements in respect of these buildings are continuing from preceding years. Due deduction of tax at source was made u/s 194I of the Act and reflected in Form 26AS of the assessee. The ld. AR submitted that nature and character of lease rental income or terms of the lease agreements have not been disputed by the ld. AO and the adjustment made by the ld. AO is merely on the technical ground that deduction u/s 80IA of the Act is only available in respect of income taxable under the head “profit or gain of business and profession” and as such the lease rental income earned by the assessee is required to be taxed under the head. The ld. AR submitted that the reasoning of the ld. AO is wholly misconceived and against the scheme of the Act. It may be appreciated that the income earned by the assessee is first required to be assessed under the defined heads of income in terms of section 14 of the Act and only thereafter, the benefit of deduction as specified under Chapter VI-A of the Act is to be allowed. Moreover, the rental income from the very same buildings having been assessed and accepted under the head „Income from House Property‟ in the past, the mere fact that in the year under consideration, the assessee has claimed deduction u/s 80IA of the Act in respect of notified buildings, there is absolutely no justification or basis for changing the head of income and same is self-contradictory and inconsistent. It is worthwhile to clarify that the observation of the ld. AO that the usage of terms 'profits and gains derived from such business' in section 80IA(1) means that eligible income must be assessable under the „Profits or gains of Business and Profession' is irrational and misconceived as deduction is in respect of income from notified project and not head specific. It may be appreciated that that the benefit of deduction u/s 801A of the Act is available in respect of income derived from industrial park which may be assessable under any head of income and as such the interpretation of the ld. AO is highly restrictive and contrary to the purpose and spirit of incentive provision. In fact, the bare language of the section 80IA of the Act does not even talk about any specific head of income and the entire emphasis is that the income must be derived from development, operation or maintenance of industrial park. 3. Similarly, in page 9 para 12 of the order, this Tribunal had wrongly mentioned that the issue of claiming deduction under section 80IA of the Act has been considered. The Learned AR duly pointed out that this should be deduction under section 80IAB of the Act. This was found to be correct and accordingly, we deem it fit to modify the typographical error crept in para 12 of Printed from counselvise.com MA No. 20/Del/2024 DLF Cyber City Developers Ltd Page | 3 the order and accordingly, the deduction claimed under section 80IA shall have to be read as deduction under section 80IAB of the Act. 4. This miscellaneous application shall be read along with the Tribunal order dated 29-11-2023 and all other contents of the said original Tribunal order shall remain unchanged subject to the aforesaid modifications. 5. In the result, the miscellaneous application of the assessee is allowed. Order pronounced in the open court on 30/12/2025. -Sd/- -Sd/- (C. N. PRASAD) (M. BALAGANESH) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 30/12/2025 A K Keot Copy forwarded to 1. Applicant 2. Respondent 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, New Delhi Printed from counselvise.com "