Income tax Officer, V. M/s. Shah Bafna Associates, Pune

ITA 199/PUN/2017

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 1963 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 5 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-06-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 27-01-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RELATE TO ASSESSMENT YEARS
• Assessee Lawyers: THIS CONSOLIDATED

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B, PUNE . . , , BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI VIKAS AWASTHY, JUDICIAL MEMBER . / ITA NOS.181 & 199/PUN/2017 / ASSESSMENT YEARS : 2012-13 & 2013-14 ITO, WARD-5 (1), PUNE VS. M/S. SHAH BAFNA ASSOCIATES, SHOP NO.13 & 14, ASHWINI PARADISE, BIBWEWADI, LULLA NAGAR ROAD, PUNE 411 037 PAN : ABRFS4866P (APPELLANT) (RESPONDENT) / ORDER PER R.S.SYAL, VP : THESE TWO APPEALS BY THE REVENUE RELATE TO THE ASSESSMENT YEARS 2012-13 & 2013-14. SINCE COMMON ISSUE IS RAISED IN THESE TWO APPEALS, WE ARE, THEREFORE, PROCEEDING TO DISPOSE THEM OFF BY THIS CONSOLIDATED ORDER FOR THE SAKE OF CONVENIENCE. ASSESSEE BY SHRI PRAYAG JHA REVENUE BY SHRI M.K. VERMA DATE OF HEARING 27-06-2019 DATE OF PRONOUNCEMENT 28-06-2019 ITA NOS.181 & 199/PUN/2017 M/S. SHAH BAFNA ASSOCIATES 2 2. THE ONLY ISSUE RAISED HEREIN IS AGAINST THE ALLOWING OF DEDUCTION U/S.80IB(10) OF THE INCOME-TAX ACT, 1961 (HEREINAFTER ALSO CALLED THE ACT) ON PRO-RATA BASIS. 3. BRIEFLY STATED, THE FACTS OF THE CASE FOR THE A.Y. 2012- 13ARE THAT THE ASSESSEE FILED ITS RETURN CLAIMING DEDUCTION U/S.80IB(10) OF THE ACT FOR A SUM OF RS.3.52 CRORE AND ODD. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSIN G OFFICER (AO) OBSERVED THAT THE PROJECT WAS NOT A 6 FLOOR PROJECT BUT EACH WING HAD 10 OR 12 FLOORS AND 4 FLATS ON E ACH FLOOR, WHEREAS THE ASSESSEE HAD TAKEN PERMISSION AND COMPLETION AS ON 31-03-2012 FOR ONLY 72 FLATS. CONSIDERING THE RELEVANT PROVISIONS, THE AO DISENTITLED THE ASSESSEE TO THE ENTIRE AMOUNT OF DEDUCTION CLAIMED U/S.80IB(10) OF THE ACT. THE LD. CIT(A) HELD IN PARA NO.7.3.1. OF THE IMPUGNED O RDER THAT THE PROJECT WAS PARTLY COMPLETED AND HENCE, THE ASSESSEE WAS ENTITLED TO PROPORTIONATE/PRO-RATA DEDUCTION U/S.80IB(10) FOR THE 72 FLATS CONSTRUCTED BY IT IN A, B AND C WINGS PRIOR TO 31-03-2012. HE FURTHER OBSERVED THAT THE ASSESSEE DID NOT CLAIM ANY DEDUCTION U/S.80IB(10) IN RESPECT OF THE FLATS WH ICH WERE SANCTIONED AFTER 31-03-2012. THE REVENUE IS AGGRIE VED ITA NOS.181 & 199/PUN/2017 M/S. SHAH BAFNA ASSOCIATES 3 BY THE FINDING GIVEN BY THE LD. CIT(A). FACTS OF THE APPEAL FOR A.Y. 2013-14 ARE ADMITTEDLY SIMILAR TO THOSE OF A.Y. 2012-13 BUT FOR THE DIFFERENCE IN THE AMOUNT OF DEDUCTION. 4. WE HAVE HEARD BOTH THE SIDES AND GONE THROUGH THE RELEVANT MATERIAL ON RECORD. THE FACTUAL RECORDING MADE B Y THE LD. CIT(A) THAT THE ASSESSEE DID NOT CLAIM ANY DEDUCTION IN RESPECT OF THE FLATS WHICH WERE NOT COMPLETED UPTO THE YEA R ENDING HAS NOT BEEN CONTROVERTED BY THE LD. DR. THE LD. AR SUBMITTED THAT THE ISSUE RAISED IN THESE APPEALS IS NO MORE RES INTEGRA IN VIEW OF AN ORDER PASSED BY THE PUNE BENCHES OF THE TRIBUNAL IN THE CASE OF DCIT VS. M/S. OM ASSOCIATES (ITA NO.1031/PUN/2016). VIDE ORDER DATED 06-06-2018, THE TRIBUNAL HAS HELD THE ASSESSEE TO BE ENTITLED TO PRO-RATA DEDUCTION U/S.80IB(10) IN RESPECT OF THE COMPLETED BUILDINGS. THE LD. DR FAIRLY CONCEDED THAT THE FACTS AND CIRCUMSTANCE S OF THE INSTANT APPEALS ARE MUTATIS MUTANDIS COVERED BY THE AFORESAID ORDER OF THE TRIBUNAL WHICH, HAS BEEN RENDE RED IN FAVOUR OF THE ASSESSEE. RESPECTFULLY FOLLOWING THE PRECED ENT, ITA NOS.181 & 199/PUN/2017 M/S. SHAH BAFNA ASSOCIATES 4 WE APPROVE THE VIEW CANVASSED BY THE LD. CIT(A) IN THE IMPUGNED ORDERS. 5. IN THE RESULT, THE APPEALS ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 28 TH JUNE, 2019. SD/- SD/- (VIKAS AWASTHY) (R.S.SYAL ) / JUDICIAL MEMBER / VICE PRESIDENT PUNE; DATED : 28 TH JUNE, 2019 / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT; 2. / THE RESPONDENT; 3. ( ) / THE CIT (APPEALS)-4, PUNE 4. 5. THE PR.CIT-3, PUNE ' , , / DR B, ITAT, PUNE; 6. ( / GUARD FILE. // TRUE COPY // / BY ORDER, // TRUE COPY // SENIOR PRIVATE SECRETARY , / ITAT, PUNE ITA NOS.181 & 199/PUN/2017 M/S. SHAH BAFNA ASSOCIATES 5 DATE 1. DRAFT DICTATED ON 27-06-2019 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 27-06-2019 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. *