2013 (1) TMI 935 - HC - Income Tax

Summary

Issues involved: Interpretation of Section 80IB of the Income Tax Act, 1961 regarding approval of building plan for project Krishna Keval Township.

Summary:
1. The High Court of Bombay heard appeals by the revenue for assessment years 2003-04 & 2004-05, focusing on whether the project Krishna Keval Township fulfills the requirements of Section 80IB(1) of the Income Tax Act, 1961, specifically regarding the approval of the building plan by the Municipal Corporation.

2. The parties acknowledged that the issue in the appeals aligns with a previous decision in CIT V/s. Vandana Properties, where the Court ruled in favor of the respondent-assessee on a similar matter, providing precedent for the current case.

3. The revenue contended that the approval of the layout plan differs from that of the building plan, emphasizing that for Section 80IB benefits, the sanction of the building plan is crucial. Despite the alignment with the Vandana Properties case, the Court refrained from expressing a definitive opinion on the deduction under Section 80IB based on plan approvals, leaving it open for future cases to determine.

4. Consequently, the appeal was disposed of without costs, based on the precedent set by the Vandana Properties case, without providing a conclusive stance on the deduction under Section 80IB related to plan approvals.