2010 (10) TMI 1079 - AT - Income Tax

Summary

Issues involved: Interpretation of deduction u/s 80IB(10) for proceeds from sale of unutilized FSI in housing projects.

Summary:
The appeal by revenue challenged the order of the Commissioner of Income-tax (Appeals)-II, Baroda regarding the allowance of deduction u/s 80IB(10) for the sale of unutilized FSI in a housing project for assessment year 2007-08. The assessing officer contended that the profit from the sale of unutilized FSI was not derived from development and construction activities, limiting the deduction to a specific portion of the FSI. The assessee cited a previous decision by ITAT, Ahmedabad in the case of Radhe Developer to support their position. The Commissioner, relying on the Radhe Developer case, ruled in favor of the assessee and deleted the addition made by the assessing officer.

The Departmental Representative argued that the issue was already decided in favor of the assessee by ITAT in the Radhe Developer case. After considering the submissions and facts, the Tribunal agreed that the issue was indeed covered by the Radhe Developer case. Consequently, the Tribunal upheld the decision of the Commissioner and dismissed the revenue's appeal.

In conclusion, the Tribunal found no fault with the Commissioner's order and confirmed the decision in favor of the assessee based on the precedent set by the Radhe Developer case. Therefore, the departmental appeal was dismissed.