ACIT, Circle-6(1), Hyderabad, Hyderabad V. Annapurna Builders, Hyderabad, Hyderabad

ITA 1743/HYD/2016

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 6047 (ITAT-HYDERABAD)
• Duration Of Justice: 2 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-03-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 29-12-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K J RAO
• Keywords: Business income

Judgement Text

1 ITA.NO.1743/HYD/2016 M/S. ANNAPURNA BUILDERS, HYDERABAD. IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B : HYDERABAD BEFORE SHRI D. MANMOHAN, VICE PRESIDENT AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA.NO.1743/HYD/2016 ASSESSMENT YEAR 2013-2014 THE ACIT, CIRCLE-6(1) HYDERABAD. VS. M/S. ANNAPURNA BUILDERS HYDERABAD. PAN AAEFA9477F (APPELLANT) (RESPONDENT) FOR REVENUE : SHRI K.J. RAO FOR ASSESSEE : -NONE- DATE OF HEARING : 22.03.2017 DATE OF PRONOUNCEMENT : 22.03.2017 ORDER PER D. MANMOHAN, V.P. THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE O RDER PASSED BY CIT(A)-VI, HYDERABAD AND IT PERTAINS TO THE A.Y. 2013-2014. FOLLOWING GROUNDS WERE URGED BEFORE US : 1. THE LD. CIT(A) ERRED BOTH IN LAW AND FACTS. 2. THE LD. CIT(A)S DECISION THAT THE APPELLANT CANNOT BE DENIED CLAIM OF DEDUCTION U/S.80IA(40(III), UNTIL THE APPR OVAL IS WITHDRAWN BY THE CENTRAL GOVT./CBDT, IS ERRONEOUS. 3. THE LD. CIT(A) FAILED TO APPRECIATE THE FACT THAT T HE SAID APPROVAL IS SUBJECT TO SATISFACTION OF CONDITIONS LAID DOWN IN STATUTE AND VIOLATION OF CONDITIONS WOULD COMPEL THE A.O. TO DE NY THE CLAIM. 4. THE LD. CIT(A) FAILED TO APPRECIATE THE FACT THAT I T IS BOTH THE PREROGATIVE AND RESPONSIBILITY OF THE A.O. TO EXAMI NE WHETHER THE CONDITIONS SPECIFIED THEREIN ARE VIOLATED OR NOT AN D TO DISALLOW THE CLAIM IF FOUND TO BE INELIGIBLE. 2 ITA.NO.1743/HYD/2016 M/S. ANNAPURNA BUILDERS, HYDERABAD. 5. ANY OTHER GROUND(S) THAT MAY BE URGED AT THE TIME O F HEARING. 2. AT THE OUTSET, IT MAY BE NOTICED THAT THE LD. CIT(A) FOL LOWED THE DECISION OF THE ITAT IN ASSESSEES OWN CASE FOR THE EARLIER TWO YEARS WHILE DIRECTING THE A.O. TO ALLOW DEDUCTION TO ASSESS EE UNDER SECTION 80IA(4) OF THE ACT. THE RELEVANT PORTION OF THE ORDER O F THE CIT(A) IS REPRODUCED. 2. THE APPELLANTS INCOME INCLUDES RENTAL INCOME FROM BLOCK I AND II OF WHITE HOUSE AND BUSINESS INCOME FROM BL OCK III, OF WHICH THE LATTER WAS CLAIMED ENTIRELY AS DEDUCTION U/S.80IA(4)I(III). THE APPELLANT SUBMITTED THAT BLO CK III OF THE BUILDING HAD BEEN OPERATED AND MAINTAINED AS AN IND USTRIAL PARK UNDER THE INDUSTRIAL PARK SCHEME, 2002 AFTER O BTAINING THE DUE APPROVALS FROM THE MINISTRY OF COMMERCE, GOVERNMENT OF INDIA, AS WELL AS THE CBDT, NEW DELHI . THE A.O. DISALLOWED THE DEDUCTION U/S.80IA(4)(III). 3. THE ISSUE RAISED BY THE A.O. WERE DECIDED BY THE UNDERSIGNED IN THE FAVOUR OF THE APPELLANT FOR THE A.Y. 2012-13 IN VIEW OF THE ORDER OF THE ITAT, HYDERABAD IN ITA.NO.1055/HYD /2014 DATED 22.10.2004 FOR A.Y. 2011-12. ON REVENUES APP EAL FOR THE A.Y. 2012-13, THE HONBLE ITAT, HYDERABAD VIDE ITS ORDER DATED 23.12.2015 IN ITA.NO.1268/HYD/2015 HAS UPHELD ORDER OF THE CIT(A). THE FACTS OF THE CASE FOR THE YEAR UNDER CONSIDERATION ARE IDENTICAL WITH THOSE IN THE EARLI ER YEARS. THEREFORE, RESPECTFULLY FOLLOWING THE DECISION OF T HE ITAT AND THE APPELLATE ORDERS IN THE APPELLANTS OWN CASE FO R THE PRECEDING YEARS, AS CITED ABOVE, THE APPEAL OF THE ASSESSEE ON THIS ISSUE IS ALLOWED. 3. LD. D.R. ADMITTED THAT THE ISSUE STANDS COVERED BY THE DECISION OF THE ITAT. IN FACT, ASSESSEE PLACED BEFORE US COPY OF THE ORDER OF THE ITAT, A BENCH, HYDERABAD IN ASSESSEES OWN CASE FOR THE A.Y. 2012-2013 WHEREIN IDENTICAL ISSUE WAS DECIDED IN FAV OUR OF THE ASSESSEE. 3 ITA.NO.1743/HYD/2016 M/S. ANNAPURNA BUILDERS, HYDERABAD. 4. UNDER THESE CIRCUMSTANCES, WE DO NOT FIND ANY INFI RMITY IN THE ORDER PASSED BY CIT(A). AS PRONOUNCED IN THE OPEN COURT, WE DISMISS THE APPEAL OF THE REVENUE. ORDER PRONOUNCED IN THE OPEN COURT ON 22.03. 2017. SD/- SD/- (S. RIFAUR RAHMAN) (D. MANMOHAN) ACCOUNTANT MEMBER VICE PRESIDENT HYDERABAD, DATED 22 ND MARCH, 2017 VBP/- COPY TO 1. THE ACIT, CIRCLE-6(1), 6 TH FLOOR, B BLOCK, I.T. TOWERS, MASAB TANK, HYDERABAD. 2. M/S. ANNAPURNA BUILDERS, 6-3-1192, KUNDANBAGH, B EGUMPET, HYDERABAD. 3. CIT(A)-6, HYDERABAD. 4. PR. CIT-6, HYDERABAD. 5. D.R. ITAT B BENCH, HYDERABAD. 6. GUARD FILE