2013 (6) TMI 846 - HC - Income Tax

Summary

Issues involved: The judgment deals with the following substantial questions of law:
1. Whether the Appellate Tribunal was right in deleting the disallowance u/s. 80IB (10) without appreciating the legal relationship between the assessee firm and the end users?
2. Whether the Tribunal was correct in allowing deduction u/s. 80-IB (10) on profit derived from the sale of unutilized FSI?
3. Whether the Tribunal was right in holding that the amended provision is not applicable to the assessee's project approved in 2003?

Issue 1: Disallowance u/s. 80IB (10):
The Court noted that the said question is answered against the Revenue by a previous decision of the Division Bench in the case of CIT v. Radhe Developers [2012] 341 ITR 403 (Guj.). The decision was further confirmed by the Hon'ble Supreme Court, leading to the dismissal of the present Tax Appeal concerning this issue.

Issue 2: Deduction u/s. 80-IB (10) on profit from unutilized FSI:
Regarding this question, it was mentioned that other Tax Appeals are admitted, including Tax Appeal No. 1306 of 2011 and connected appeals, such as Tax Appeal No. 173 of 2012. The present Tax Appeal was admitted specifically for this issue and is to be heard along with the mentioned appeals.

Issue 3: Applicability of amended provision to the project approved in 2003:
The Court pointed out that the Division Bench had already answered this question against the Revenue in the case of Manan Corporation v. Assistant Commissioner of Income Tax, reported in 255 CTR 415 = (2013) 214 Taxmann.com 377 (Guj). As there was no indication of further appeal by the Revenue, the present Tax Appeal was dismissed concerning this issue as well.