Asst. Commissioner of Income Tax, Circle-2(1), Hyderabad V. Jayadarsini Housing Private Limited, Hyderabad

ITA 1443/Hyd/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 1966 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-09-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 04-09-2018
• Assessment Year: 2005-2006
• Appeal Filed On: 11-08-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S RAMA RAO
• Section: 80IB

Judgement Text

ITA NO 1443 OF 2017 JAYADARSINI HOUSI NG P LTD HYDERABAD. PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD A BENCH, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S.RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA NO.1443/HYD/2017 (ASSESSMENT YEAR: 2005-06) DY. COMMISSIONER OF INCOME TAX, CIRCLE 2(1) HYDERABAD VS JAYADARSINI HOUSING PRIVATE LIMITED, HYDERABAD PAN: AAACJ5050E (APPELLANT) (RESPONDENT) FOR REVENUE: SHRI PRABHAT KUMAR GUPTA, DR FOR ASSESSEE : SHRI S. RAMA RAO O R D E R PER SMT. P. MADHAVI DEVI, J.M. THIS IS REVENUES APPEAL FOR THE A.Y 2005-06 AGAINS T THE ORDER OF THE CIT (A)-9, HYDERABAD, DATED 28.02. 2017. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: 1. THE ORDER OF THE LEARNED CIT (A) IS ERRONEOUS O N FACTS AND IN LAW. 2. WHETHER ON THE FACTS AND IN CIRCUMSTANCES OF THE CASE, THE LEARNED CIT (A) IS CORRECT IN DELETING THE ADDI TION WITHOUT APPRECIATING THE FACT THAT DEDUCTION U/S 80IB (10) DEPENDS ON CUMULATIVE SATISFACTION OF ALL CONDITIONS LAID D OWN IN THE SECTION. 3. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CA SE, THE LEARNED CIT (A) IS CORRECT IN ALLOWING PROPORTIONAT E DEDUCTION U/S 80IB(10)? 4. ANY OTHER GROUND THAT MAY BE URGED AT THE TIME O F HEARING. DATE OF HEARING: 04.09.2018 DATE OF PRONOUNCEMENT: 07 . 0 9 .2018 ITA NO 1443 OF 2017 JAYADARSINI HOUSI NG P LTD HYDERABAD. PAGE 2 OF 3 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE CO MPANY, ENGAGED IN REAL ESTATE AND CONSTRUCTION WORK, FILED ITS RETURN OF INCOME ON 22.11.2007 CLAIMING DEDUCTION U/S 80IB OF THE ACT. THE AO DISALLOWED THE DEDUCTION ON THE GROUND THAT SOME OF THE FLATS EXCEEDED THE NET BUILT UP AREA OF 1500 SFT. A GGRIEVED, THE ASSESSEE FILED AN APPEAL BEFORE THE CIT (A), WHO AL LOWED THE CLAIM PROPORTIONATELY BY FOLLOWING VARIOUS DECISIONS/PREC EDENTS ON THIS ISSUE AND AGAINST THE SAID ORDER, THE REVENUE IS IN APPEAL BEFORE US. 3. THE LEARNED DR SUPPORTED THE ORDER OF THE AO, WH ILE THE LEARNED COUNSEL FOR THE ASSESSEE SUPPORTED THE ORDER OF THE CIT (A) AND ALSO HAS PLACED BEFORE US THE DECISIONS OF THE COORDINATE BENCH OF THIS TRIBUNAL IN THE CASE OF MA NJEERA PROJECTS LTD IN ITA NOS.1704/HYD/2014, 1230/HYD/2015 & 1082/HYD/2016 DATED 27.04.2018 WHEREIN BY FOLLOWING THE JUDGMENT OF THE HON'BLE BOMBAY HIGH COURT IN THE CA SE OF BRAHMA ASSOCIATES REPORTED IN 333 ITR 289 AND ALSO THE DECISION OF THE HON'BLE BOMBAY HIGH COURT IN THE CASE OF VIS WAS PROMOTERS REPORTED IN 373 ITR 317 (MAD.), HAS HELD THAT THE ASSESSEE IS ELIGIBLE FOR THE PROPORTIONATE DEDUCTIO N. THE RELEVANT PARA IS REPRODUCED HEREUNDER FOR READY REFERENCE: 31. THE OTHER GROUND OF THE REVENUE FOR DENYING TH E CLAIM OF DEDUCTION U/S 80IB IS THAT THE AREA IN SOME OF T HE FLATS EXCEEDED 1500SFT. AS HELD BY THE HON'BLE MADRAS HIG H COURT IN THE CASE OF VISWAS PROMOTERS (SUPRA), THE ASSESSEE IS ENTITLED TO DEDUCTION IN RESPECT OF THE FLATS WHICH DO NOT EXCEED THE AREA OF 1500SFT ON PRO-RATA BASIS. THE AO IS ACCORDINGLY DIRECTED TO ALLOW THE DEDUCTI ON. 4. FURTHER, IN THE CASE OF SMT. CHERUKURI SWAPNA AS REPORTED IN (2016) 68 TAXMANN.COM 408 (HYD-TRIB.), THE ITA NO 1443 OF 2017 JAYADARSINI HOUSI NG P LTD HYDERABAD. PAGE 3 OF 3 COORDINATE BENCH OF THIS TRIBUNAL HAS HELD THAT THE DEDUCTION U/S 80IB CAN BE DISALLOWED ONLY ON PROPORTIONATE BA SIS AND CANNOT BE DISALLOWED IN ITS ENTIRETY. RESPECTFULLY FOLLOWING THE ABOVE DECISIONS, SAME, WE DO NOT SEE ANY REASON TO INTERFERE WITH THE ORDER OF THE CIT (A) AND THE REVENUES APPEAL I S ACCORDINGLY DISMISSED. 5. IN THE RESULT, REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 7 TH SEPTEMBER, 2018. SD/- SD/- (S.RIFAUR RAHMAN) ACCOUNTANT MEMBER (P. MADHAVI DEVI) JUDICIAL MEMBER HYDERABAD, DATED 7 TH SEPTEMBER, 2018. VINODAN/SPS COPY TO: 1 DY.CIT CIRCLE 2(1) 5 TH FLOOR, ROOM NO.514, SIGNATURE TOWERS, KONDAPUR, HYDERABAD 2 M/S. JAYADARSINI HOUSING P LTD D.NO.8/2/580 & 574 /C, FLAT NO.202, NAJAF APARTMENTS, ROAD NO.7 & 8, IMAM KOMEI NI ROAD, BANJARA HILLS, HYDERABAD 500034 3 CIT (A)-9 HYDERABAD 4 PR. CIT 2, HYDERABAD 5 THE DR, ITAT HYDERABAD 6 GUARD FILE BY ORDER