Income-tax Officer, Ward - 3(5), Pune V. M/s. Satish Bora and Associates, Pune

ITA 1090/PUN/2018

• Counselvise Citation: [2021] 104 COUNSELVISE.COM (IT) 7093 (ITAT-PUNE)
• Duration Of Justice: 3 year(s) 5 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-12-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 14-06-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “A, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER आयकर अपील सं. / ITA No.1090/PUN/2018 िनधा रण वष / Assessment Year : 2012-13 ITO, Ward-3(5), Pune Vs. M/s. Satish Bora and Associates, 2, Rachna Avenue, Near Sagar Arcade, F.C. Road, Deccan Gymkhana, Pune 411 004 PAN : AATFS1942G Appellant Respondent आदेश / ORDER This appeal by the Revenue is directed against the order passed by the CIT(A)-3, Pune on 20-03-2018 in relation to the Assessment Year 2012-13. 2. The only issue projected through various grounds is against the granting of deduction u/s.80IB(10) of the Income-tax Act, 1961 (hereinafter also called ‘the Act’) on proportionate basis. 3. Succinctly, the factual matrix of the case is that the assessee filed its return claiming deduction u/s.80IB(10) amounting to Rs.6,70,53,561/- in respect of project called “Crystal Heights”, which was accepted, as such, in the Assessee by Shri Sunil Ganoo Revenue by Shri J.P. Chandraker Date of hearing 01-12-2021 Date of pronouncement 02-12-2021 ITA No.1090/PUN/2018 M/s. Satish Bora & Associates 2 assessment completed u/s.143(3). Subsequently, the assessment was re-opened on the ground that the deduction was not permissible. The AO completed the assessment by withdrawing the amount of deduction at Rs.6.70 crore. The ld. CIT(A), relying on certain precedents, directed to grant proportionate deduction in respect of the profits derived from the sale of eligible units. Aggrieved thereby, the Revenue has come up in appeal before the Tribunal. 4. We have heard both the sides and perused the relevant material on record. The only point is about the granting of deduction u/s.80IB(10) of the Act which was denied by the AO on the ground of incomplete construction of the project. On the contrary, the ld. CIT(A) directed to allow deduction on proportionate basis in respect of the units fulfilling the requisite conditions prescribed under the section. In our considered opinion, this issue is no more res integra in view of several judgements of Hon’ble jurisdictional High Court, including Devashri Nirman LLB Vs. ACIT and another (2020) 429 ITR 597 (Bom) holding that the entire deduction cannot be disallowed u/s.80IB(10) of the Act and the same may be ITA No.1090/PUN/2018 M/s. Satish Bora & Associates 3 proportionately allowed in respect of the eligible units. Since the ld. CIT(A) has granted the deduction in the light of such a view, we echo the same. 5. In the result, the appeal is dismissed. Order pronounced in the Open Court on 02 nd December, 2021 Sd/- Sd/- (S.S. VISWANETHRA RAVI) (R.S.SYAL) JUDICIAL MEMBER VICE PRESIDENT पुणे Pune; दनांक Dated : 02 nd December, 2021 Satish आदेश आदेशआदेश आदेश क क क क ितिलिप ितिलिप ितिलिप ितिलिप अ ेिषत अ ेिषतअ ेिषत अ ेिषत / Copy of the Order is forwarded to : 1. अपीलाथ / The Appellant; 2. यथ / The Respondent; 3. आयकर आयु (अपील) / The CIT (Appeals)-3, Pune 4. The PCIT-2, Pune 5. DR, ITAT, A Bench, Pune ; 6. गाड फाईल / Guard file. // True copy // आदेशानुसार आदेशानुसारआदेशानुसार आदेशानुसार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune ITA No.1090/PUN/2018 M/s. Satish Bora & Associates 4 Date 1. Draft dictated on 01-12-2021 Sr.PS 2. Draft placed before author 01-12-2021 Sr.PS 3. Draft proposed & placed before the second member JM 4. Draft discussed/approved by Second Member. JM 5. Approved Draft comes to the Sr.PS/PS Sr.PS 6. Kept for pronouncement on Sr.PS 7. Date of uploading order Sr.PS 8. File sent to the Bench Clerk Sr.PS 9. Date on which file goes to the Head Clerk 10. Date on which file goes to the A.R. 11. Date of dispatch of Order. *