SAPTARSHI GROUP, THANE V. DCIT CIR 4, MUMBAI

ITA 727/MUM/2011

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 2528 (ITAT-MUMBAI)
• Duration Of Justice: 4 year(s) 9 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-11-2015
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: H
• Next Hearing Date: 17-11-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 25-01-2011
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: KUSUM BA NSAL
• Section: 80IB

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH H, MUMBAI BEORE SHRI JASON P. BOAZ ACCOUNTANT MEMBER AND SHRI RAM LAL NEGI, JUDICIAL MEMBER ITA NO. 727/MUM/2011 (ASSESSMENT YEAR : 2006-07) M/S. SAPTARSHI GROUP, 101, 1 ST FLOOR, SATYAM SHIVAM SHOPPING CENTRE, NALASOPARA (W), TAL. VASAI, DIST. THANE PIN 401 203 PAN: AAYFS 1560R ... APPELLANT VS. THE DCIT, CIRCLE -4, INCOME TAX OFFICE, QURESHI MANSION, NEAR TEEN HATH NAKA, THANE (W) PIN 400 602 .... RESPONDENT APPELLANT BY : NONE RESPONDENT BY : MS. KUSUM BA NSAL DATE OF HEARING : 17/11/2015 DATE OF PRONOUNCEMENT : 17/11/2015 ORDER PER JASON P. BOAZ, A.M: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST T HE ORDER OF THE CIT(APPEAL)-II, THANE DATED 27/9/2010 FOR ASSESSMEN T YEAR 2006-07. 2. IN THIS APPEAL, THE ASSESSEE HAS RAISED THE FOLL OWING GROUNDS:- 1.THE ID. CIT (APPEALS) ERRED IN CONFIRMING THE AD DITION OF RS.25,25,360/ MADE TO THE RETURNED INCOME OF THE APPELLANT BY DIS ALLOWING THE CLAIM FOR DEDUCTION ULS 80IB (10) OF THE I. TAX ACT IN RESPEC T OF PROFIT DERIVED FROM THE 2 ITA NO. 727/MUM/2011 (ASSESSMENT YEAR : 2006-07) HOUSING PROJECT DEVELOPED BY THE APPELLANT AT NALAS OPARA (WEST), DIST. THANE. 2A. THE ID. CIT (APPEALS) FAILED TO APPRECIATE THAT THE HOUSING PROJECT DEVELOPED BY THE APPELLANT AT NALASOPARA (W), DIST. THANE WAS APPROVED FOR DEVELOPMENT ON 17.07.2003 AND THE PROVISIONS OF SEC TION 80IB(10) AS THEY STOOD IN F.Y. 200304 DID NOT PROVIDE FOR COMPLETIO N OF CONSTRUCTION BEFORE ANY PARTICULAR DATE. 2B. WITHOUT PREJUDICE, THE CIT (A) ERRED IN NOT APP RECIATING THE FACT THAT THE HOUSING PROJECT DEVELOPED BY APPELLANT FULFILLED TH E CONDITIONS IMPOSED BY SECTION 80IB (1O)(A)(I) WITH REGARDS TO COMPLETION OF CONSTRUCTION OF THE HOUSING PROJECT PRIOR TO 31ST MARCH 2008 AND HENCE THE DEDUCTION U/S. 80IB (10) WAS CORRECTLY CLAIMED. 3. THE ID. CIT (APPEALS) ERRED IN REJECTING THE GRO UND RAISED BY THE APPELLANT WITH REGARDS TO COMMERCIAL ESTABLISHMENTS FORMING P ART OF THE HOUSING PROJECT CLAIMING DEDUCTION U/S. 80IB(L0) WITHOUT AD JUDICATING ON THE SAME IN THE APPEAL BEFORE HIM. 4A. THE ID. CIT (APPEALS) ERRED IN SUSTAMMG THE DIS ALLOWANCE OF THE DEDUCTION CLAIMED ULS 80IB (10) OF THE I. TAX ACT B Y HOLDING THAT THE APPELLANT'S PROJECT BREACHED THE CONDITIONS PRESCRI BED U/S 80 IB (10) AS CERTAIN COMMERCIAL ESTABLISHMENTS OF 8383.85 SQ. FE ET (BUILT UP AREA) WERE PART OF THE HOUSING PROJECT. 4B. THE ID. CIT (APPEALS) FAILED TO APPRECIATE THAT THE AMENDED PROVISIONS REGARDING RESTRICTED AREA OF SHOPS AND OTHER COMMER CIAL ESTABLISHMENTS, OPERATIVE W.E.F.01.04.2005 DID NOT APPLY TO THE CAS E OF THE APPELLANT AS THE HOUSING PROJECT OF THE APPELLANT HAD COMMENCED PRIO R TO THE INSERTION OF SUB CLAUSE (D) TO SECTION 80 IB (10). 5. THE APPELLANT CRAVES LEAVE TO ADD, ALTER, AMEND AND/OR VARY THE GROUNDS OF APPEAL/RELIEF CLAIMED AT ANY TIME BEFORE THE DEC ISION OF THE APPEAL. 3. THE ASSESSEE FIRM ENGAGED IN THE BUSINESS OF B UILDERS AND DEVELOPERS, FILED ITS RETURN OF INCOME FOR ASSESSME NT YEAR 2006-07 ON 30/10/2006 DECLARING NIL INCOME AFTER CLAIMING DE DUCTION OF RS.25,25,360/- UNDER SECTION 80 IB(10) OF THE INCOM E TAX ACT, 1961(IN SHORT THE ACT). THE CASE WAS TAKEN UP FOR SCRUTI NY AND THE ASSESSMENT WAS COMPLETED U/S.143(3) OF THE ACT VIDE ORDER DATE D 24/11/2008, WHEREIN THE INCOME OF THE ASSESSEE WAS COMPUTED AT RS.25,25,360/- AS 3 ITA NO. 727/MUM/2011 (ASSESSMENT YEAR : 2006-07) AGAINST NIL RETURNED INCOME, IN VIEW OF THE ASSES SING OFFICER DISALLOWING THE ASSESSEES CLAIM FOR DEDUCTION U/S. 80 IB (10) OF THE ACT. 3.2 ON APPEAL, THE CIT(A)-II, THANE VIDE ORDER DATE D 25/8/2010 DISMISSED THE ASSESSEES APPEAL, THEREBY UPHOLDING THE ASSESSING OFFICERS DISALLOWANCE OF THE ASSESSEES CLAIM FOR DEDUCTION U/S. 80 IB(10) OF THE ACT. 4. HEARINGS OF THIS APPEAL WERE INITIALLY FIXED ON 10/07/2013 AND 26/8/2013. AS THE BENCH DID NOT FUNCTION ON THOSE DATES, THE CASE WAS ADJOURNED TO 26/08/2013. ON 26/08/2013, THE CASE W AS ADJOURNED TO 28/10/2013 ON THE REQUEST OF THE LD. AR OF THE ASSE SSEE. SUBSEQUENTLY, THE BENCH DID NOT FUNCTION ON 28/10/2013, 24/12/201 3 AND 08/04/2014. WHEN THE CASE WAS REFIXED FOR HEARING S ON 4/6/2014, 21/08/2014, 1/10/2014, 10/2/2015,13/4/2015, 6/7/20 15, 8/9/2015 AND 20/10/2015, NO ONE APPEARED ON BEHALF OF THE A SSESSEE AND THE CASE WAS THEN ADJOURNED TO 17/11/2015. TODAY, I.E. ON 17/11/2015, WHEN THE CASE WAS CALLED FOR HEARING, ONCE AGAIN NO ONE APPEARED ON BEHALF OF THE ASSESSEE. MS. KUSUM BANSAL, LD. DR F OR THE REVENUE WAS, HOWEVER PRESENT. IN THE CIRCUMSTANCES LAID OUT ABO VE, WE PROCEED TO DISPOSE OFF THIS APPEAL WITH THE HELP OF THE LD. DR . 5. ON A PERUSAL OF THE GROUNDS RAISED IN THIS APPEA L BY THE ASSESSEE(SUPRA), THE ONLY ISSUE RAISED THEREIN CHAL LENGES THE DENIAL OF ITS CLAIM FOR DEDUCTION U/S. 80IB(10) OF THE ACT BY THE AUTHORITIES BELOW. AFTER CONSIDERING THE SUBMISSIONS MADE BY THE LD. D R AND ALSO THE FINDINGS RECORDED BY THE AUTHORITIES BELOW REJECTI NG THE ASSESSEES CLAIM FOR DEDUCTION U/S. 80 IB(10) OF THE ACT, WE F IND THAT THE ASSESSEE HAS FAILED TO REBUT THE FINDINGS OF THE AUTHORITIES BELOW THAT IT WAS NOT 4 ITA NO. 727/MUM/2011 (ASSESSMENT YEAR : 2006-07) ENTITLED TO BE ALLOWED THE CLAIMED OF DEDUCTION OF RS.25,25,360/- U/S. 80 IB(10) OF THE ACT. IN THAT VIEW OF THE MATTER, WE UPHOLD THE FINDING OF THE LD. CIT(A) IN THE IMPUGNED ORDER DISALLOWING THE ASSESSEES CLAIM FOR DEDUCTION U/S. 80 IB(10) OF THE ACT AND CONSEQU ENTLY DISMISS THE GROUNDS AT SL.NO.1 TO 5 RAISED BY THE ASSESSEE. 6. IN THE RESULT, ASSESSEES APPEAL FOR ASSESSMENT YEAR 2006-07 IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 17/11/2015. SD/- SD/- (RAMLAL NEGI) (JASON P. BOAZ) JUDICIAL MEMBER ACCOUNTANT ME MBER MUMBAI, DATED 17/11/2015 COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT , 2. THE RESPONDENT. 3. THE CIT(A)- 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. BY ORDER, //TRUE COPY// (DY./ASSTT. REGISTRAR) ITAT, MUMBAI VM , SR. PS