Dy.Comm.of Income Tax,Circle-8,, Nagpur V. M/s Pioneer Infrastructure Co.,Pvt.Limited,Construction, Nagpur

ITA 54/NAG/2011

• Counselvise Citation: [2012] 119 COUNSELVISE.COM (IT) 9601 (ITAT-NAGPUR)
• Duration Of Justice: 1 year(s) 8 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-12-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2007-2008
• Appeal Filed On: 23-03-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: H WANARE
• Section: 80IB

Judgement Text

, - IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR , BENCH , ( E - COURT), MUMBAI , BEFORE SHRI R.K.GUPTA , J M & SHRI RAJENDRA , A M ITA NO. 5 3 / N AG / 20 1 1 ( ASSESSMENT YEAR : 2007 - 08 ) DCIT, CIR - 8, NAGPUR (MAHARASHTRA) . VS. M/S PIONEER CONSTRUCTION, 263, WHC ROAD, NAGPUR(MAHARASHTRA) , PAN/GIR NO. : A AB FP 6047 P ( APPELLAN T ) .. ( RESPONDENT ) AND ITA NO. 5 4 / NAG /20 11 ( ASSESSMENT YEAR : 2007 - 08 ) DCIT, CIR - 8, NAGPUR (MAHARASHTRA). VS. M/S PIONEER INFRASTRUCTURE CO. PVT. LIMITED, 263, WHC ROAD, NAGPUR(MAHARASHTRA), PAN/GIR NO. : A A TPG 8734 A ( APPELLANT ) .. ( RESPONDENT ) /REVENUE BY : SHRI H.WANARE /ASSESSEE BY : SHRI K.P.DE WANI DATE OF HEARING : 1 7 TH DEC ., 2012 DATE OF PRONOUNCEMENT : 19 TH DEC. ,2012 O R D E R P ER SHRI R.K.G UPTA, JM : TH E SE ARE TWO APPEALS BY THE DEPARTMENT IN RESPECT TO TWO DIFFERENT ASSESSEES , AGAINST THE ORDER DATED 5 - 1 - 2011 OF LEANED CIT(A) - II , NAGPUR (MAH ARASHTRA) , RELATING TO ASSESSMENT YEARS 2007 - 08 , WHICH HAS BEEN HEARD THROUGH E - COURT, MUMBAI . ITA NO . 5 3 &54 /20 1 1 2 2 . THE OBJECTION RAISED BY THE DEPARTMENT IN BOTH THESE APPEALS IS IN REGARD TO ALLOWING THE DEDUCTION UNDER SECTION 80IB(10) . 3 . IN THESE CASE S , RESPECTIVE R ETURNS WERE FILED. THESE TWO ASSESSEES ARE PARTNERSHIP FIRM ENGAGED IN THE BUSINESS OF CONSTRUCTION OF HOUSING PROJECTS. BOTH THESE ASSESSEES HAD CLAIMED DEDUCTION UNDER SECTION 80IB OF THE ACT. 4 . THE ASSESSING OFFICER DISALLOWED THE DEDUCTION UNDER SECT ION 80IB IN THESE TWO CASES BY OBSERVING THAT THESE ASSESSEE S HAVE VIOLATED THE CONDITIONS FOR ELIGIBILITY OF DEDUCTION UNDER SECTION 80IB(10) OF THAT AS THE TOTAL BUILT OF AREA EXCEEDS 1500 SQ.FTS. THE AO ALSO NOTED THAT THE BUILDING PLAN SANCTIONED BY TH E LOCAL AUTHORITIES FOR AN AREA IS LESS THAN 1 ACRE, THEREFORE, ALSO DEDUCTION IS NOT ALLOWABLE. 5 . THE DETAIL SUBMISSION S WERE FILED BEFORE THE LEARNED CIT(A) . RELIANCE WAS PLACED ON THE DECISION OF TRIBUNAL DECIDED IN ITA NO. 364/NAG/2007, VIDE ORDER DA TED 21 - 5 - 2008 . LEARNED CIT(A) BY OBSERVING THAT AN IDENTICAL ISSUE HAS ALREADY BEEN DECIDED BY THE NAGPUR BENCH OF THE TRIBUNAL, THEREFORE, THESE ASSESSEES ARE ALSO DESERVE TO GET DEDUCTION UNDER SECTION 80IB AS THE FACTS ARE IDENTICAL. ACCORDINGLY, IN BO TH THESE CASES, DEDUCTION UNDER SECTION 80IB WAS ALLOWED. 6 . LEARNED DR PLACED RELIANCE ON THE ORDER OF THE ASSESSING OFFICER IN BOTH THESE CASES. 7 . ON THE OTHER HAND, LEARNED COUNSEL OF THE ASSESSEES PLACED RELIANCE ON THE ORDER OF THE LEARNED C IT(A) . ITA NO . 5 3 &54 /20 1 1 3 8 . AFTER CONSIDERING THE SUBMISSIONS AND PERUSING THE MATERIAL ON RECORD, WE FIND THAT THE ORDER OF THE LEARNED CIT(A) IS REASONABLE, WHO HAS ALLOWED DEDUCTION UNDER SECTION 80IB FOLLOWING THE DECISION OF THE TRIBUNAL ON IDENTICAL FACTS. THEREFORE, THERE I S NO REASON TO INTERFERE IN THE FINDINGS OF THE LEARNED CIT(A) IN BOTH THESE CASES. ACCORDINGLY, WE CONFIRM THE ORDER OF THE LEARNED CIT(A) F OR BOTH OF THE ASSESSMENT YEARS AND DISMISS BOTH THE APPEALS OF THE DEPARTMENT. 9 . RESULTANTLY , BOTH THE APPEAL S O F THE DEPARTMENT ARE DISMISSED . ORDER PRONOUNCED IN THE E - COURT ON THIS 19 TH DAY OF DEC. 2012. - 2012 SD/ - SD/ - ( ) ( RAJENDRA ) ( ) ( R.K.GUPTA ) / ACCOUNTANT MEMBER / JUDICIAL MEMBER MUMBAI ; DATED : 19 /12 / 2012 . /PKM , PS COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / THE CIT(A) , MUMBAI / NAGPUR . 4. / CIT 5. / DR, ITAT, MUMBAI / NAGPUR . 6. GUARD FILE. / /TRUE COPY// / BY ORDER, ( DY./ASSTT. REGISTRAR) / ITAT, MUMBAI