The ITO, Ward-9(1), Ahmedabad V. M/s. Parth Developers, Ahmedabad

ITA 1782/AHD/2012

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 9686 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 5 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-01-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 19-01-2016
• Assessment Year: 2006-2007
• Appeal Filed On: 09-08-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NARENDRA SINGH
• Assessee Lawyers: U S BHATI
• Keywords: Tax effect

Judgement Text

I.T.A. NO. 1782 /AHD/ 201 2 ASSESSMENT YEAR: 200 6 - 0 7 PAGE 1 OF 2 IN THE INCOME TAX APPELLATE TRIBUNAL, AHMEDABAD B BENCH, AHMEDABAD [CORAM : PRAMOD KUMAR AM AND S S GODARA JM] I.T.A. NO. 1782 /AHD/201 2 A SSESSMENT Y EAR : 20 0 6 - 07 INCOME TAX OFFICER .APPELLANT WARD 9(1), AHMEDABAD . VS. PARTH DE VELOPER S . RESPONDENT NEW NANDANVAN SOCIETY, KATHWAD A ROAD, NAVA NARODA, AHMED A BAD . [ P AN: AAHFP 3167 G ] APPEARANCES BY: NA R ENDRA SINGH, FOR THE A PPELLANT U.S. BHATI , FOR THE RESPONDENT D ATE OF CONCLUDING THE HEARING: JANUARY 19 TH , 201 6 DATE OF PRONOUNCING THE ORDER : JANUARY 22 ND 201 6 O R D E R PER PRAMOD KUMAR , AM : 1. BY WAY OF THIS APPEAL, THE ASSESSING OFFICER HAS CHALLENGED CORRECTNESS OF THE ORDER DATED 28 TH MAY , 201 2 , PASSED BY THE LD. CIT(A), FOR THE ASSESSMENT YEAR 2 00 6 - 0 7 , ON THE FOLLOWING GROUNDS : - 1 A) THE LD. C OMMISSIONER OF INCOME TAX ( A PPEAL) - XV, AHMEDABAD HAS ERRED IN LAW AND ON FACTS IN DIRECTING THE ASSESSING OFFICER TO ALLOW THE ASSESSEE S CLAIM FOR DEDUCTION OF RS.9,44,571/ - U/S. 80IB(10) OF THE I.T. ACT. 1 B) . THE LD. C OMMISSIONER OF INCOME TAX (APPEAL) - XV, AHMEDABAD HAS ERRED IN HOLDING T HAT THE ASSESSEE FULFILS THE CONDITIONS LAID DOWN FOR CLAIMING DEDUCTION U/S. 80IB(10) EVEN WHEN THE LAND WAS IN THE NAME OF SHRI BHAGWANDAS BABALDAS PATEL WHO IS A SEPARATE LEGAL ENTITY IN THE EYE OF LAW A ND THE ASSESSEE ENTERED INTO THE PROJECT BY A DEVELOPMENT AGREEMENT WITH HIM. THE ENTIRE RESPONSIBILITY TO EXECUTE T HE HOUSING I.T.A. NO. 1782 /AHD/ 201 2 ASSESSMENT YEAR: 200 6 - 0 7 PAGE 2 OF 2 PROJECT AND ABIDE BY THE TERMS AND CONDITIONS OF ITS APPROVAL RIGHT FROM THE INCEPTION OF THE PROJECT TILL ITS COMPLETION RESTS WITH HIM. THE LOCAL AUTHORITY HAD GRANTED PERMISSION FOR DEVELOPMENT AND CONSTRUCTION OF THE PROJECT TO HIM. ASSESSEE WAS JUST A CONTRACTOR OF THE LAND OWNERS CONSTRUCTING RESIDENTIAL UNITS AND NOT A DEVELOPER. 2 . THE LD. C OMMISSIONER OF INCOME TAX (APPEAL) - XV, AHMEDABAD HAS ERRED IN LAW AND ON FACT S IN D ELETING TH E DISALLOWANCE MADE U/S.40(A)(IA) OF RS.1,47,050/ - . 3. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE , T HE LD. C OMMISSIONER OF INCOME TAX (APPEAL ) - XV, AHMEDABAD OUGHT TO HAVE UPHELD THE ORDER OF THE ASSESSING OFFICER. 4. IT IS THEREFORE, PRAYED THAT THE ORDER OF THE LD. COMMISSIONER OF INCOME - TAX (APPEALS) - XV, AHMEDABAD M A Y BE SET - ASIDE AND THAT OF THE ASSESSING OFFICER BE RESTORED . 2. WE HAVE NOTICED THAT THE TAX EFFECT INVOLVED IN THIS APPEAL IS LESS THAN RS.10,00,000/ - . IN VIEW OF THIS UNDISPUTED FACT AND IN THE LIGHT OF CBDT CIRCULAR NO.21/2015 DATED 10 TH DECEMBER, 2015, WE ARE OF THE CONSIDERED VIEW THAT THIS APPEAL IS LIABLE TO BE DISMISS ED AS WITHDRAWN FOR THE SIMPLE REASON THAT TAX EFFECT INVOLVED IN THE APPEAL IS LESS THAN RS.10,00,000/ - . 3. IN THE RESULT, APPEAL IS DISMISSED. P RONOUNCED IN THE OPEN COURT ON THIS 22 ND DAY OF JANUARY, 2016. SD/ - SD/ - S S GODARA PRAMOD KUMAR (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) DATED: THE 22 ND DAY OF JANUARY , 201 6 . PBN/ * COPIES TO : (1) THE APPE LLANT 2) THE RESPONDENT (3) CIT ( 4) CIT(A) (5) DR (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD