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

ITA 793/Hyd/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 7314 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 3 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-09-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB-B
• Assessment Year: 2015-2016
• Appeal Filed On: 17-05-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARVINDAKSHAN

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B , HYDERABAD BEFORE SHRI C.N. PRASAD , JUDICIAL MEMBER AND SHRI M. BALAGANESH, ACCOUNTANT MEMBER ITA NO. 793 /HYD/201 9 ASSESSMENT YEAR: 20 1 5 - 1 6 (THROUGH VIDEO CONFERENCE) I NCOME - TAX OFFICER , WARD 11(5 ) , HYDERABAD. VS. NA GARJUNA HOMES, HYDERABAD. PAN AACFN 5803 C ( APPELLANT ) (RESPONDENT) REVENUE BY : SHRI ARVINDAKSHAN ASSESSEE BY : S HRI K.C. DEVDAS DATE OF HEARING : 02 / 0 9 /20 20 DATE OF PRONOUNCEMENT : 03 / 09 / 20 20 O R D E R PER M. BALAGANESH , A .M. : T H IS APPEAL FILED BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF CIT(A) 9 , DATED 31 / 0 1 /20 1 8 , HYDERABAD FOR AY 20 1 5 - 1 6 . 2. BRIEF FACTS ARE THAT THE ASSESSEE IS A PARTNERSHIP FIRM ENGAGED IN REAL ESTATE BUSINESS. FOR THE YEAR 2015 - 16 ASSESSEE FILED ITS RETURN OF INCOME ADMITTING INCOME OF RS. NIL AFTER CLAIMING DEDUCTION U/S 80IB(10) OF THE IT ACT, 19 61 OF RS. 3,64,90,555/ - . IN THE SCRUTINY ASSESSMENT, THE A. O. DENIED THE ASSESSEE'S CLAIM BY HOLDING THAT THE ASSESSEE IS NOT ELIGIBLE FOR DEDUCTION SINCE THE MATTER IS SUB - JUDICE REGARDING DEDUCTION U / S 80 I B BEFORE HIGH COURT. 3. AGGRIEVED, ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE FIRST APPELLATE AUTHORITY BY CONTENDING THAT THE A. O . FAILED TO NOTE THAT THE ASSESSEE'S CLAIM OF DEDUCTION U/ S 80IB(10) WAS ALLOWED FOR THE PAST SEVERAL YEARS AND ERRED IN PREDETERMINING THAT THE A SSESSEE IS 2 ITA NO. 793 /HYD/1 9 NAGARJUNA HOMES, HYD. NOT ELIGIBLE FOR DEDUCTION U/S 80IB(10) ON THE PREMISE THAT THE MATTER IS SUBJUDICE. 4. LD. CIT (A) CONSIDERED THE SUBMISSIONS OF THE ASSESSE E AND ALLOWED THE APPEAL BY FOLLOWING THE DECISION OF THE ITAT HYDERABAD BENCH IN THE ASSESSEE'S OWN CASE (ITA NO.54/HYD/2015, DATED 04.09.2015) FOR THE A.Y. 2010 - 11. AGGRIEVED, REVENUE IS IN APPEAL BEFORE THE TRIBUNAL BY RAISING THE FOLLOWING GROUNDS OF A PPEAL: 1. THE LEARNED C!T(A) HAS ERRED BOTH IN LAW AND ON FACTS OF THE CASE. 2. THE LEARNED C!T(A) SHOULD HAVE APPRECIATED THE FACT THAT THE DATE OF FIRST APPROVAL I.E., 07 - 05 - 2001 SHOULD BE TAKEN AS THE DATE OF APPROVAL OF LOCAL AUTHORITY AND BECAUSE IT IS PRIOR TO 01 - 04 - 2004, THE CONSTRUCTION SHOULD HAVE BEEN COMPLETED BY 31 - 03 - 2008. HOWEVER, A S IT WAS NOT COMPLETED BY 31 - 032008, CLAIM OF DEDUCTION U/S 8018(10) OF THE INCOME TAX ACT, 1961 CANNOT BE ALLOWED 3. ANY OTHER GROUND(S) THAT MAY BE URGED AT THE TIME OF HEARING. 5. LEARNED DEPARTMENTAL REPRESENTATIVE RELIED UPON THE ORDER OF THE AO . 6. ON THE OTHER HAND, LEARNED COUNSEL FOR THE ASSESSEE STRONGLY SUPPORTED THE DECISION OF THE LD. CIT(A). 7. WE HAVE CAREFULLY CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. WE HAVE ALSO CAREFULLY GONE THROUGH THE ORDERS PASSED BY THE TAX AUTHORITIES. WHILE ALLOWING THE ASSESSEE'S APPEAL, LD. CIT(A) RIGHTLY FOLLOWED THE DECISION OF THE ITAT HYDERABAD BENCH (SUPRA) IN ASSESSEE'S OWN CASE, WHEREIN AN IDENTICAL ISSUE WAS DECIDED BY THE TRIBUNAL IN FAVOUR OF THE ASSESSEE. THEREFORE, WE ARE OF THE VIEW THAT THE ORDER PASSED BY THE LD. CIT(A) IS FAIR AND REASONABLE AND IT DOES NOT CALL FOR ANY INTERFERENCE. 3 ITA NO. 793 /HYD/1 9 NAGARJUNA HOMES, HYD. ACCORDINGLY, THE GROUNDS RAISED BY THE REVENUE ON THIS ISSUE ARE DISMISSED. 8 . IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED . PRONOUNCED IN THE OPEN COURT ON 3 RD SEPTEMBER , 20 20 . SD/ - SD/ - ( C.N. PRASAD ) ( M. BALAGANESH ) JUDICIAL MEMBER ACCOUNTANT MEMBER HYDERABAD, DATED: 3 RD S EPTEMBER , 20 20 . KV C OPY TO: - 1) IT O, WARD 11 ( 5 ), ROOM NO. 1010 , 10 TH FLOOR, SIGNATURE TOWERS, OPP. BOTANICAL GARDENS, KONDAPUR 500 084. 2) M/S NAGARJUNA HOMES, FLAT NO. 503 & 504, DAFFODILS BLOCK, NAGARJUNA DREAMLAND, KOMPALLY, HYDERABAD 500 014. 3) CIT(A) 9 HYDERABAD. 4) CIT - 5 , HYD. 5 ) THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., HYDERABAD. 6 ) GUARD FILE