Income-tax Officer, Ward - 9 (3), Pune V. M/s. Padmavati Developers, Pune

ITA 653/PUN/2019

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 2249 (ITAT-PUNE)
• Duration Of Justice: 3 year(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-05-2022
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 25-04-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 133A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “B”, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER ITA Nos.645 to 650/PUN/2019 Assessment Years : 2010-11 to 2012-13, 2014-15 to 2016-17 M/s. Padmavati Developers Empire Estate, CTS No.4510/1, Chinchwad, Pune – 411019 PAN : AAGFP7344G Vs. DCIT, Central Circle 1(1), Pune Appellant Respondent ITA Nos.651 to 653/PUN/2019 Assessment Years : 2010-11 to 2012-13 ITO, Ward-9(3), Pune Vs. M/s. Padmavati Developers Empire Estate, CTS No.4510/1, Chinchwad, Pune – 411019 PAN : AAGFP7344G Appellant Respondent आदेश / ORDER This batch of nine appeals comprising of six by the assessee for the A.Ys. 2010-11 to 2012-13, 2014-15 to 2016-17 and three by the Revenue for the A.Ys. 2010-11 to 2012-13 arise out of a Assessee by Shri Krishna Gujarathi Revenue by S/Shri Sardar Singh Meena and Suhas Dabade Date of hearing 12-05-2022 Date of pronouncement 13-05-2022 ITA Nos.645 to 653/PUN/2019 M/s.Padmavati Developers 2 common order dated 26.02.2019 passed by the ld. CIT(A). Since common issues are raised in these appeals, we are, therefore, proceeding to dispose them off by this consolidated order for the sake of convenience. A.Y. 2010-11 2. Briefly stated, the facts of the case are that the assessee filed its return declaring Nil income after claiming deduction u/s 80IB(10) of the Income-tax Act, 1961 (hereinafter referred to as „the Act‟) at Rs.1,29,59,656. The Assessing Officer (AO) discussed brief history of the case by noticing that a Survey action was taken on the assessee u/s 133A of the Act on 15.06.2006, which divulged that construction of some of the buildings was going on. He further noted that the claim of the assessee for the deduction was disallowed for the A.Ys. 2006-07 and 2007-08 mainly on the ground that the completion certificate was not obtained from the local authority by 31.03.2008 owing to non- completion of the said building by the due date. The AO further observed that the assessee had projects in Sector 1 and Sector 7, for which development charges were paid as a single unified ITA Nos.645 to 653/PUN/2019 M/s.Padmavati Developers 3 project. He, therefore, jettisoned the contention of the assessee that the projects on Sector 1 and Sector 7 were different. He however, observed that for the year under consideration the deduction was claimed only on Sector 7. This is how, he rejected the assessee‟s contention for giving proportionate deduction in respect of built-up area completed before 31.03.2008. Resultantly, the deduction claimed u/s 80IB(10) of the Act was disallowed in entirety amounting to Rs.1.29 crores. The ld. CIT(A) observed that similar issue has travelled to the Tribunal in the case of assessee itself for the A.Ys. 2006-07, 2007-08 and 2009-10, wherein the appeals filed both by the assessee as well as the Revenue were dismissed. Following the same, he held that both the projects were separate and the assessee was entitled to claim deduction on proportionate basis in respect of project at Sector 7. The assessee is aggrieved by not allowing deduction u/s 80IB(10) of the Act in entirety in respect of Sector 7 project, whereas the Revenue has challenged the action of ld. CIT(A) in allowing the deduction on proportionate basis. ITA Nos.645 to 653/PUN/2019 M/s.Padmavati Developers 4 3. We have heard both the sides and gone through the relevant material on record. It is seen that the issue under consideration came up for consideration before the Tribunal. Vide its afore- referred order, the Tribunal held that Sector 1 and Sector 7 were different projects; housing project in Sector 1 was completed prior to the stipulated date and hence deduction u/s 80IB(10) of the Act was available; housing project in Sector 7 was not completed and hence the assessee was entitled to proportionate deduction u/s 80IB(10). Admittedly, there is no change in the facts and circumstances of the case. Respectfully following the precedent, we hold that the ld. CIT(A) was fully justified in following the order of Tribunal in holding that the assessee was entitled to deduction u/s 80IB(10) of the Act in respect of Sector 7 project on proportionate basis. A.Ys. 2011-12, 2012-13, 2014-15 to 2016-17 4. Both the sides are in agreement that the facts and circumstances of the cross appeals are similar to those already considered and decided by the Tribunal in its order for the A.Ys. 2006-07, 2007-08 and 2009-10. The ld. CIT(A) has also followed ITA Nos.645 to 653/PUN/2019 M/s.Padmavati Developers 5 the said order. Respectfully going with the precedent, we are satisfied that no interference is warranted in the impugned order on this score. 5. In the result, all the appeals of assessee as well as the Revenue are dismissed. Order pronounced in the Open Court on 13 th May, 2022. Sd/- Sd/- (PARTHA SARATHI CHAUDHURY) (R.S.SYAL) JUDICIAL MEMBER VICE PRESIDENT प ु णे Pune; ददन ांक Dated : 13 th May, 2022 GCVSR आदेश की प्रतिलिपि अग्रेपिि/Copy of the Order is forwarded to: 1. अपील र्थी / The Appellant; 2. प्रत्यर्थी / The Respondent; 3. The CIT(A)-6, Pune 4. 5. The Pr.CIT-5, Pune विभागीय प्रविविवि, आयकर अपीलीय अविकरण, पुणे “B” / DR „B‟, ITAT, Pune 6. गार्ड फाईल / Guard file आदेशान ु सार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अविकरण ,पुणे / ITAT, Pune ITA Nos.645 to 653/PUN/2019 M/s.Padmavati Developers 6 Date 1. Draft dictated on 12-05-2022 Sr.PS 2. Draft placed before author 12-05-2022 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. *