2011 (10) TMI 696 - AT - Income Tax

Summary

Issues involved: Interpretation of Section 80-IB(10) for housing projects and eligibility for deduction.

Summary:
The appeal was filed by the Revenue against the order of the Commissioner of Income-tax(A)-I, Bangalore, for the assessment year 2006-07. The case revolved around the eligibility of the assessee for deduction u/s.80IB(10) for a housing project named 'Brigade Millennium'. The Assessing Officer contended that the project did not qualify for deduction due to certain units exceeding specified plinth areas, making it ineligible as per the provisions of Section 80 IB(10).

Before the Commissioner of Income-tax(A), the assessee relied on a previous ITAT decision in their favor for AY 2004-05 and AY 2005-06, where the deduction u/s.80IB(10) was allowed. The Commissioner of Income-tax(A) upheld the assessee's claim for deduction u/s.80IB(10) for the current assessment year, leading to the Revenue's appeal.

The Tribunal, considering the earlier order and the identical nature of the current case, decided in favor of the assessee. Citing various legal precedents, the Tribunal upheld the Commissioner's decision to allow the deduction u/s.80IB(10) for the housing project 'Brigade Millennium'. The Tribunal dismissed the Revenue's appeal based on the precedent and upheld the order of the Commissioner of Income-tax(A).

Therefore, the Tribunal's decision favored the assessee, confirming their eligibility for deduction u/s.80IB(10) for the housing project 'Brigade Millennium', based on the legal precedents and the earlier ITAT decision in the assessee's favor for previous assessment years.