2012 (9) TMI 1085 - AT - Income Tax

Summary

Issues involved: Challenge to the correctness of the order of Ld. CIT(A)-29, Mumbai u/s. 80IB(10) for assessment year 2008-09.

Issue 1: Deduction u/s. 80IB(10)
- The Revenue challenged the Ld. CIT(A)'s direction to allow deduction u/s. 80IB(10) amounting to Rs. 4,85,36,946.
- The assessee constructed a housing project under the SRA Scheme and claimed deduction u/s. 80IB(10) for the TDRs received.
- The AO disallowed the deduction, similar to the disallowance in the previous assessment year.
- Ld. CIT(A) allowed the deduction based on the precedent set in the earlier year's case.
- The Revenue contested this decision, citing the AO's findings and previous Tribunal confirmation of Ld. CIT(A)'s decision in a similar case.

Issue 2: Tribunal's Decision
- The Tribunal found the facts for the current year to be identical to the previous year.
- Referring to a previous Tribunal decision, it confirmed the assessee's entitlement to relief u/s. 80IB(10).
- The Tribunal held that the assessee, as a developer, is entitled to the deduction despite conveying land to SRA before developing tenements.
- The market value of TDRs allotted to the assessee was considered as sale consideration for the tenements' development, impacting relief u/s. 80IB(10).
- As no new facts were presented by the Revenue, the Tribunal dismissed the appeal, aligning with the previous decision.
- Consequently, the appeal filed by the Revenue was dismissed.

This judgment addressed the challenge to the deduction u/s. 80IB(10) for a housing project under the SRA Scheme, emphasizing the consistency of facts with a previous year's case and the Tribunal's confirmation of the assessee's entitlement to the deduction based on specific considerations related to the project's development and sale of TDRs.