Income Tax Officer, Ward-11(5) , Hyderabad V. Nagarjuna Homes , Hyderabad

ITA 42/Hyd/2020

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 8178 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 6 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-07-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB-A
• Next Hearing Date: 12-07-2021
• Assessment Year: 2017-2018
• Appeal Filed On: 10-01-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PAVITRAN KUMAR
• Section: 143(3); 80IB

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A, HYDERABAD (THROUGH VIRTUAL HEARING) BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ITA NO. 42/HYD/2020 A.Y. 2017 - 18 INCOME TAX OFFICER, WARD - 11(5), R.NO.1010, 10 TH FLOOR, SIGNATURE TOWERS, OPP. BOTANICAL GARDEN, KONDAPUR, HYDERABAD - 500 084. VS. M/S. NAGARJUNA HOMES, FLAT NO.503 & 504, DAFFODILS BLOCK, NAGRJUNA DREAMLAN, KOMPALLY, HYDERABAD. PAN: AACFN 5803 C (APPELLANT) (RESPONDENT) ASSESSEE BY SHRI K.C. DEVDAS REVENUE BY SHRI PAVITRAN KUMAR, DR DATE OF HEARING: 12/07/2021 DATE OF PRONOUNCEMENT: 2 8 /07/2021 ORDER PER A. MOHAN ALANKAMONY , A.M: THIS APPEAL IS FILED BY THE DEPARTMENT AGAINST THE ORDER OF THE LD. CIT(A) - 5, HYDERABAD IN APPEAL NO. 10100/2019 - 20/CIT(A) - 5, DATED 13/11/2019 PASSED U/S. 143(3) R.W.S 250(6) OF THE ACT FOR THE A.Y. 2017 - 18. 2. THE REVENUE HAS RAISED THREE GROUNDS IN ITS APPEAL AND THEY ARE EXTRACTED HEREIN BEL OW FOR REFERENCE: - 2 ( 1 ) THE LD. CIT(A) HAS ERRED BOTH IN LAW AND ON FACTS OF THE CASE. ( 2 ) THE LD. CIT(A) SHOULD HAVE APPRECIATED THE FACT THAT THE DATE OF FIRST APPROVE I.E., 07/05/2001 SHOULD BE TAKEN AS THE DATE OF APPROVAL OF LOCAL AUTHORITY AND BECAUS E IT IS PRIOR TO 01/04/2004, THE CONSTRUCTION SHOULD HAVE BEEN COMPLETED BY 31/3/2008. HOWEVER, AS IT WAS NOT COMPLETED BY 31/3/2008, CLAIM OF DEDUCTION U/S. 80IB(10) OF THE ACT CANNOT BE ALLOWED. (3) ANY OTHER GROUND(S) THAT MAY BE URGED AT THE TIME OF H EARING. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS PARTNERSHIP - FIRM ENGAGED IN THE BUSINESS OF DEVELOPMENT AND CONSTRUCTION OF HOUSING PROJECTS E - FILED ITS RETURN OF INCOME FOR THE A.Y. 2017 - 18 ON 30/10/2017 DECLARING AN INCOME OF RS. 4,50, 000/ - AFTER CLAIMING DEDUCTION OF RS. 1,74,06,255/ - UNDER CHAPTER - VIA OF THE ACT. SUBSEQUENTLY, THE CASE WAS TAKEN UP FOR SCRUTINY UNDER CASS. DURING THE ASSESSMENT PROCEEDINGS, THE LD. A.O DENIED THE ASSESSEES CLAIM OF DEDUCTION OF RS. 1,74,06,255/ - MADE U/S. 80IB(10) OF THE ACT BY OBSERVING THAT THE ASSESSEE - COMPANY HAS NOT COMPLETED THE PROJECT WITHIN THE STIPULATED PERIOD OF TIME AND THEREFORE THE ASSESSEE - COMPANY IS NOT ELIGIBLE TO CLAIM DEDUCTION U/S. 80IB(10) OF THE ACT AND ACCORDINGLY MADE ADDITION OF RS. 1,74,06,255/ - . ON APPEAL, THE LD. CIT(A) CONSIDER ING THE SUBMISSIONS OF THE ASSESSEE ALLOWED THE APPEAL BY RELYING ON THE DECISION OF THE HYDERABAD BENCH OF THE TRIBUNAL IN THE ASSESSEES OWN CASE IN ITA NO. 722/HYD/2009, DATED 30/09/2020 FOR THE A.Y. 2005 - 06 . AGGRIEVED WITH THE DECISION OF THE LD. CIT(A), THE REVENUE IS IN APPEAL BEFORE US. 3 4. AT THE OUTSET, LD. DR RELIED ON THE ORDER OF THE LD. A.O. AND ARGUED IN SUPPO RT OF THE VIEW S EXPRESSED BY HIM. ON THE OTHER HAND, THE LD. AR RELIED ON THE ORDER OF THE LD. CIT(A). 5. WE HAVE HEARD THE RIVAL SUBMISSIONS AND CAREFULLY PERUSED THE MATERIALS ON RECORD. ON EXAMINING THE LD. CIT(A)S ORDER AS WELL AS THE DECISIONS OF THE HYDERABAD BENCH OF THE TRIBUNAL IN THE ASSESSEES OWN CASE FOR THE A.Y.: 2010 - 11, 2014 - 15 AND 2015 - 16, WE ARE OF THE CONSIDERED VIEW THAT THE LD. CIT(A) HAS RIGHTLY ALLOWED THE ASSESSEES APPEAL BY FOLLOWING THE DECISIONS OF THE ITAT, HYDERABAD BENCH (SUP RA) IN THE ASSESSEES OWN CASE, WHEREIN THE IDENTICAL ISSUE OF GRANTING DEDUCTION U/S. 80IB (10) WAS DECIDED IN FAVOUR OF THE ASSESSEE. THEREFORE, FOLLOWING THE CONSISTENT VIEW TAKEN BY THE TRIBUNAL, W E ARE OF THE VIEW THAT THE ORDER OF THE LD. CIT(A) DOES NOT CALL FOR ANY INTERFERENCE. 6. IN THE RESULT, APPEAL FILED BY THE REVENUE IS DISMISSED. PRONOUNCED IN THE OPEN COURT ON THE 28 TH JULY, 2021. SD/ - SD/ - (P. MADHAVI DEVI) ( A. MOHAN ALANKAMONY ) JUDICIAL MEMBER ACCOUNTANT MEMBER HYDERABAD, DATED: 28 TH JULY , 2021. OKK COPY TO: - 1) M/S. NAGARJUNA HOMES, FLAT NO. 503 & 504, DAFFODILS BLOCK, NAGARJUNA DREAMLAN, KOMPALLY, HYDERABAD 500014. 4 2) INCOME TAX OFFICER, WARD - 11(5), R.NO. 1010, 10 TH FLOOR, SIGNATURE TOWERS, OPP. BOTANICAL GARDEN, KONDAPUR, HYDERABAD. 3) THE CIT (A) - 5, HYDERABAD. 4) THE PRINCIPAL COMMISSIONER OF INCOME TAX - 5, HYDERABAD. 5) THE DR, ITAT, HYDERABAD 6) GUARD FILE