THE COMMISSIONER OF INCOME TAX V. M/S NARAYAN BUILDERS

ITA/665/2015

AI Insights

The case involves multiple income tax appeals filed by the Commissioner of Income-Tax and the Income-Tax Officer against M/s. Narayan Builders, concerning deductions claimed under Section 80IB(10) of the Income Tax Act for the assessment years 2007-2008, 2008-2009, and 2010-2011. The primary legal issue was whether the Tribunal was correct in law in directing the assessing authority to grant deductions despite the assessee's failure to comply with the statutory requirements of filing an audit report in Form 10CCB along with the necessary completion certificates from the local authority. The High Court of Karnataka at Bengaluru dismissed the appeals, referencing a prior decision where similar issues were adjudicated.

• Counselvise Citation: [2016] 140 COUNSELVISE.COM (IT) 728566 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 31-03-2016
• Assessment Year: misc
• Other Referred Cases: ITA 478/15 & ITA 641/15
• Laws Referred To: Income Tax Act 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Assessee Lawyers: K V ARAVIND
• Keywords: Audit report in Form 10CCB; Completion certificate; Deduction under Section 80IB(10); Income tax appeal
• Section: 80IB(10); 260-A

Judgement Text

" 1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 31ST DAY OF MARCH 2016 PRESENT THE HON’BLE MR.JUSTICE JAYANT PATEL AND THE HON’BLE MRS.JUSTICE B.V.NAGARATHNA INCOME TAX APPEAL NO.665/2015 C/W INCOME TAX APPEAL Nos.666/2015 & 667/2015 IN ITA NO.665/2015 BETWEEN: 1. THE COMMISSIONER OF INCOME-TAX 5TH FLOOR, BMTC BUILDING, 80 FEET ROAD, KORMANGAL, BANGALORE – 560 095. 2. THE INCOME-TAX OFFICER WARD-6(3) RASHTROTHANA BHAVAN NRUPATHUNGA ROAD BANGALORE-560 001 ... APPELLANTS (BY SRI.K.V.ARAVIND, STANDING COUNSEL) 2 AND: M/S. NARAYAN BUILDERS NO.101/104, 1ST FLOOR SESHADRIPURAM BANGALORE-560 020 PAN: AAKFM 4280C ... RESPONDENT THIS INCOME TAX APPEAL IS FILED UNDER SEC.260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED:08/05/2015 PASSED IN ITA NO. 779/BANG/2014 FOR THE ASSESSMENT YEAR 2007-2008 PRAYING TO FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED ABOVE AND ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY THE ITAT, BENGALURU IN ITA NO. 779/BANG/2014 DATED:08/05/2015 AND CONFIRM THE ORDER OF THE APPELLATE COMMISSIONER CONFIRMING THE ORDER PASSED BY THE INCOME TAX OFFICER, WARD-6(3), BENGALURU. IN ITA NO.666/2015 BETWEEN: 1. THE COMMISSIONER OF INCOME-TAX 5TH FLOOR, BMTC BUILDING, 80 FEET ROAD, KORMANGAL, BANGALORE – 560 095. 2. THE INCOME-TAX OFFICER WARD-6(3) RASHTROTHANA BHAVAN NRUPATHUNGA ROAD BANGALORE-560 001 ... APPELLANTS (BY SRI.K.V.ARAVIND, STANDING COUNSEL) 3 AND: M/S. NARAYAN BUILDERS NO.101/104, 1ST FLOOR SESHADRIPURAM BANGALORE-560 020 PAN: AAKFM 4280C ... RESPONDENT THIS INCOME TAX APPEAL IS FILED UNDER SEC.260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED:08/05/2015 PASSED IN ITA NO. 780/BANG/2014 FOR THE ASSESSMENT YEAR 2008- 2009 PRAYING TO FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED ABOVE AND ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY THE ITAT, BENGALURU IN ITA NO. 780/BANG/2014 DATED:08/05/2015 AND CONFIRM THE ORDER OF THE APPELLATE COMMISSIONER CONFIRMING THE ORDER PASSED BY THE INCOME TAX OFFICER, WARD-6(3), BENGALURU. IN ITA NO.667/2015 BETWEEN: 1. THE COMMISSIONER OF INCOME-TAX 5TH FLOOR, BMTC BUILDING, 80 FEET ROAD, KORMANGAL, BANGALORE – 560 095. 2. THE INCOME-TAX OFFICER WARD-6(3) RASHTROTHANA BHAVAN NRUPATHUNGA ROAD BANGALORE-560 001 ... APPELLANTS (BY SRI.K.V.ARAVIND, STANDING COUNSEL) 4 AND: M/S. NARAYAN BUILDERS NO.101/104, 1ST FLOOR SESHADRIPURAM BANGALORE-560 020 PAN: AAKFM 4280C ... RESPONDENT THIS INCOME TAX APPEAL IS FILED UNDER SEC.260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED:08/05/2015 PASSED IN ITA NO. 781/BANG/2014 FOR THE ASSESSMENT YEAR 2010- 2011 PRAYING TO FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED ABOVE AND ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY THE ITAT, BENGALURU IN ITA NO. 781/BANG/2014 DATED:08/05/2015 AND CONFIRM THE ORDER OF THE APPELLATE COMMISSIONER CONFIRMING THE ORDER PASSED BY THE INCOME TAX OFFICER, WARD-6(3), BENGALURU. THESE APPEALS COMING ON FOR ADMISSION THIS DAY, JAYANT PATEL J., DELIVERED THE FOLLOWING: JUDGMENT These appeals are preferred by appellant-Revenue by raising the following substantial question of law: “Whether on the facts and in the circumstances of the case, the Tribunal is right in law in directing the assessing authority to give deduction under Section 80IB(10) of the Act if the assessee has 5 completed construction when the assessee had failed to file audit report in Form – 10CCB along with the completion certificate obtained from the Local Authority showing the completion of construction of the building/apartment as required under the law to claim deduction under section 80IB(10) of the Act”? 2. We have heard Mr.Aravind K.V., learned Counsel appearing for appellant-Revenue in these appeals. 3. Learned counsel for the appellants fairly concedes that the very same question in respect of the very assessee pertaining to separate assessment year came to be considered in ITA 478/15 & ITA 641/15 and this Court vide order dated 29.2.2015 dismissed the appeals. Hence, the question can be said as covered by said decision. 6 4. In view of above, on the basis of the same reasons, the present appeals also deserve to be dismissed and therefore, dismissed. Sd/- JUDGE Sd/- JUDGE Sk/- "