The ITO, Ward-9(1), Ahmedabad V. M/s. Pranami Builders, Ahmedabad

ITA 1375/AHD/2012

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 1520 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 11 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-05-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 27-05-2016
• Assessment Year: 2007-2008
• Appeal Filed On: 25-06-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, AHMEDABAD , , ! BEFORE SHRI SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER AND SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER ./ I.T.A. NO.1375/AHD/2012 ( / ASSESSMENT YEAR : 2007-8) ITO WARD-9(1) AHMEDABAD / VS. M/S.PRANAMI BUILDERS 120/4,RADHE CHAMBWES PRANAMI NAGAR VASTRAL ROAD, VASTRAL AHMEDABAD & ./ ./ PAN/GIR NO. : AAJFP 3275 F ( &) / APPELLANT ) .. ( *+&) / RESPONDENT ) &), / APPELLANT BY : SHRI DINESH SINGH, SR.DR *+&) -, / RESPONDENT BY : SHRI ANIL BRAHMAKSHATRIYA . - / DATE OF HEARING 27/05/2016 /012 - / DATE OF PRONOUNCEMENT 27/05/2016 / O R D E R PER SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER : THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST T HE ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS)-V, AHMEDABAD DATED 13/08/2012 FOR THE ASSESSMENT YEAR 2008-09. 2. THE GROUNDS RAISED BY THE REVENUE READ AS UNDER:- ITA NO. 1375/AH D/2012 ITO VS. PRANAMI BUILDERS ASST.YEAR 2007-08 - 2 - 1). THE LD. COMMISSIONER OF INCOME-TAX (APPEA LS)-XV, AHMEDABAD HAS ERRED IN LAW AND ON FACTS IN DIRECTIN G THE ASSESSING OFFICER TO ALLOW THE ASSESSEE'S CLAIM FOR DEDUCTION OF RS.23,74,917/- U/S. 80IB(10) OF THE L.T. ACT. 2). THE LD. COMMISSIONER OF INCOME-TAX (APPEALS)- XV, AHMEDABAD HAS ERRED IN HOLDING THAT THE ASSESSEE FU LFILLS THE CONDITIONS LAID DOWN FOR CLAIMING DEDUCTION U/S.80I B(10) EVEN WHEN THE LAND WAS IN THE NAME OF MADHUSUDAN CO.-OP. HOUSING SOCIETY WHICH IS A SEPARATE LEGAL ENTITY IN THE EYE OF LAW AND THE ASSESSEE ENTERED INTO THE PROJECT BY A DEVELOPMENT AGREEMENT WITH THE SOCIETY. THE ENTIRE RESPONSIBILITY TO EXEC UTE THE HOUSING PROJECT AND ABIDE BY THE TERMS AND CONDITIONS OF IT S APPROVAL RIGHT FROM THE INCEPTION OF THE PROJECT TILL ITS CO MPLETION RESTS WITH THE SOCIETY. THE LOCAL AUTHORITY HAD GRANTED P ERMISSION FOR DEVELOPMENT AND CONSTRUCTION OF THE PROJECT TO THE SOCIETY. ASSESSEE WAS JUST A CONTRACTOR OF THE LAND OWNER CO NSTRUCTING RESIDENTIAL UNITS AND NOT A DEVELOPER. 3). ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. COMMISSIONER OF INCOME-TAX (APPEALS)-XV, AHMEDABAD OUGHT TO HAVE UPHELD THE ORDER OF THE ASSESSING OFFICER. 4). IT IS THEREFORE, PRAYED THAT THE ORDER OF THE LD. C OMMISSIONER OF INCOME-TAX (APPEALS)-XV, AHMEDABAD MAY BE SET-ASIDE AND THAT OF THE ASSESSING OFFICER BE RESTORED. 3. BEFORE US, AT THE OUTSET, LD. A.R. SUBMITTED THAT T HE PRESENT APPEAL OF THE REVENUE NEED TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT IN VIEW OF THE CBDT CIRCULAR NO. 21 OF 2015 DATED 10.12.2015. THE LD. D.R. FAIRLY ADMITTED THAT THE APPEAL OF REVENUE, THE TAX EFFECT IS LESS THAN THE LIMIT PRESCRIBED BY THE AFORESAID CBDT CIRCULAR. ITA NO. 1375/AH D/2012 ITO VS. PRANAMI BUILDERS ASST.YEAR 2007-08 - 3 - 5. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. ON PERUSING THE GROUNDS OF APPEAL RAISED BY THE REVENUE IN THE APPEAL, WE FIND THAT REVENUE IS AGGRIEVED BY THE OR DERS OF LD. CIT(A) IN RESPECT OF THE RELIEF GIVEN BY HIM. AS PER THE ANN OUNCEMENT OF CENTRAL BOARD OF DIRECT TAXES (CBDT) DATED 10.12.2015 ( CIRCULAR NO. 21 OF 2015), NO DEPARTMENT APPEALS ARE TO BE FILED AGAINS T RELIEF GIVEN BY LD. CIT(A) BEFORE THE INCOME TAX TRIBUNAL UNLESS THE TA X EFFECT, EXCLUDING INTEREST EXCEEDS RS. 10 LACS AND IT FURTHER STATES THAT THE INSTRUCTIONS WILL APPLY RETROSPECTIVELY TO ALL THE PENDING APPEALS. IN THE PRESENT CASE, SINCE IT IS AN UNDISPUTED FACT THAT ON THE DEMANDS WHICH ARE IN DISPUTE IN THE APPEAL OF REVENUE, THE TAX EFFECT IS LESS THAN RS.10 LACS AND IN THE ABSENCE OF ANY MATERIAL ON RECORD BY THE REVENUE TO DEMONSTRATE THAT THE ISSUE IN THE PRESENT APPEAL IS COVERED BY EXEMPTION S SPECIFIED IN CLAUSE (8) OF THE CBDT CIRCULAR, WE ARE OF THE VIEW THAT T HE MONETARY LIMIT PRESCRIBED BY THE INSTRUCTIONS OF THE AFORESAID C BDT CIRCULAR WOULD BE APPLICABLE TO THE PRESENT APPEAL OF THE DEPARTMENT AND THEREFORE THE PRESENT APPEAL OF REVENUE IS NOT MAIN TAINABLE ON ACCOUNT OF LOW TAX EFFECT. HOWEVER, LATER ON IF IT IS FOUND THAT THERE IS ANY ERROR IN THE COMPUTATION OF THE TAX EFFECT INVOLVED OR IF FO R ANY REASON, THE AFORESAID CBDT CIRCULAR IS NOT APPLICABLE, IT WOULD BE OPEN TO THE REVENUE TO SEEK REVIVAL OF THE APPEAL. WE, THEREF ORE, DISMISS THE APPEAL OF REVENUE WITHOUT EXPRESSING ANY OPINION ON MERITS OF THE CASE. ITA NO. 1375/AH D/2012 ITO VS. PRANAMI BUILDERS ASST.YEAR 2007-08 - 4 - 6. IN THE RESULT, THE APPEAL OF REVENUE IS DISMISS ED. THIS ORDER PRONOUNCED IN OPEN COURT ON 27/05/2016 SD/- SD/- ( ) () (SHAILENDRA KUMAR YADAV) ( ANIL CHATUR VEDI ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD; DATED 27/ 05 /2016 5..,.../ T.C. NAIR, SR. PS !'#$%$' / COPY OF THE ORDER FORWARDED TO : 1. &) / THE APPELLANT 2. *+&) / THE RESPONDENT. 3. 678 9 / CONCERNED CIT 4. 9 ( ) / THE CIT(A)-XV, AHMEDABAD 5. :;<*78 , 78 2 , 6 / DR, ITAT, AHMEDABAD 6. <>?. / GUARD FILE. / BY ORDER, +:* //TRUE COPY// / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD 1. DATE OF DICTATION .. 27.6.15 (COVERED MATTER) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 27.5.16 3. OTHER MEMBER 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S.30.5.15. 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 30.5.15 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER