THE COMMISSIONER OF INCOME TAX V. M/S ELDECO HOUSING and INDUSTRIES LTD.

IAPL/99/2010

AI Insights

This case involves an appeal by the Commissioner of Income Tax against M/S Eldeco Housing & Industries Ltd. concerning the assessment year 2003-04. The appeal was filed under section 260A of the Income Tax Act, challenging the ITAT's decision which allowed deductions under section 80IB (10) and deleted an addition of Rs.80,400/-. The main legal issues revolved around the interpretation and application of section 80IB (10) of the I.T. Act, particularly whether the project in question qualified for deductions despite having commercial space, and the procedural adherence in deleting the addition of Rs.80,400/-. The court's decision referenced precedents and interpretations that favored the respondent's position.

• Counselvise Citation: [2018] 140 COUNSELVISE.COM (IT) 728410 (HC-ALLAHABAD)
• Appeal Type: Others
• Pronouncement Date: 08-01-2018
• Assessment Year: misc
• Other Referred Cases: CIT versus Arif Industries Ltd., CIT versus M/s. Veena Developers
• Laws Referred To: Income Tax Act, Section 260A, Section 80IB (10)
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: ASHISH BANSAL; P C JAIN
• Assessee Lawyers: PRAVEEN KUMAR
• Keywords: Commercial Space; Deduction; Housing project; Income tax appeal; Judicial Principle
• Section: 260A; 80IB(10)

Judgement Text

"Court No. - 35 Case :- INCOME TAX APPEAL No. - 99 of 2010 Appellant :- The Commissioner Of Income Tax Respondent :- M/S Eldeco Housing & Industries Ltd. Counsel for Appellant :- CSC,Praveen Kumar Counsel for Respondent :- Ashish Bansal,P.C.Jain Hon'ble Bharati Sapru,J. Hon'ble Neeraj Tiwari,J. Heard learned counsel for the department Sri Praveen Kumar and Sri Ashish Bansal learned counsel for the respondent assessee. This is an appeal filed by the department under section 260A of the Income Tax Act for the assessment year 2003-04 against the order of the tribunal dated 10.9.2009. The questions of law referred to are as under: \"1. Whether the Hon'ble ITAT was legally correct in allowing the deduction u/s 80IB (10) of the I.T. Act, 1961 to the assessee, ignoring the fact that the project in respect of which deduction under question allowed was not a housing project as it possess a 10983 sq. ft. However there is no provision for the commercial space in the statute in case of the said deduction for the said period as the same was allowable exclusively for the housing projects. 2. Whether the Hon'ble ITAT was legally correct in deleting the addition of Rs.80,400/- by relying upon the order passed by the office of ld. CIT(A) where in principal of judicial principal and consistently has not been following sand there by rendering the contradictory judgments on the same issue.\" So far as the first question is concerned, the first question has been decided in favour of the assessee by a Division Bench decision of this Court in the case of CIT versus Arif Industries Ltd. reported in (2017) 395 ITR 102 (All) relying on a decision of Apex Court in the case of CIT versus M/s. Veena Developers reported in (2015) 277 CTR (SC) 297 wherein the Apex Court while dealing with the question, has allowed the benefit of deduction under section 80IB (10) of the Act to the assessee as it stood prior to 1.4.2005 holding that the amendment which came in the said provision, was prospective and the unamended provision as it stood, did not contain any stipulation about the shape and size of any commercial activities were being carried out on the residential plot on which the deduction was being sought. The first question is therefore answered in favour of the assessee and against the department. So far as the second question is concerned with regard to the interest, the tribunal has dealt with the matter and has rightly come to the conclusion that the CIT (A) had deleted the addition of a sum of Rs.6,70,000/- by the order dated 27.5.2008. It appears from the record that no appeal against the order dated 27.5.2008 passed by the CIT (A) has been filed by the department. Therefore the tribunal has taken a view that the resultant interest of a sum of Rs.80,400/- should also been allowed for the assessment year 2003- 04. Therefore this question is also decided in favour of the assessee and against the department. The appeal is thus dismissed. No costs. Order Date :- 8.1.2018 rk Order Date :- 8.1.2018 rk "