2013 (10) TMI 1490 - AT - Income Tax

Summary

Issues Involved:
The appeal concerns the denial of deductions u/s. 80-IB(10) of the Income-tax Act, 1961 amounting to Rs. 7,08,34,948 in relation to the project "Harsh Paradise" due to non-completion of the project by the stipulated date of 31.03.2008.

Details of the Judgment:

Issue 1: Denial of Deductions
The appellant, a partnership firm engaged in construction schemes, claimed a deduction u/s. 80-IB(10) for the profits from the "Harsh Paradise" project. The Assessing Officer denied the deduction as the completion certificate for building H-4 was not obtained before 31.03.2008. The appellant contended that despite the non-completion of H-4, deductions should be allowed for completed buildings. The Tribunal noted that completion certificates were received for buildings H-1, H-2, H-3, and G, fulfilling the conditions for deduction u/s. 80-IB(10). Referring to a precedent, the Tribunal held that the appellant is entitled to the deduction for completed buildings except H-4. The order of the CIT(A) was set aside, directing the Assessing Officer to allow the deduction.

Issue 2: Precedent and Adjudication
The Tribunal considered a precedent from the appellant's case in the assessment year 2008-09 where a similar dispute was resolved in favor of the appellant. The Tribunal reiterated that completion of buildings H-1, H-2, H-3, and G before the deadline entitles the appellant to claim deductions u/s. 80-IB(10) for those buildings. The Tribunal emphasized a liberal interpretation of the law in favor of the appellant, considering the circumstances beyond their control in completing the entire project.

Conclusion:
Based on the precedent and the facts of the case, the Tribunal allowed the appellant's appeal, directing the Assessing Officer to permit the deduction u/s. 80-IB(10) for the completed buildings of the "Harsh Paradise" project. The decision was made on 30th October 2013 by the Appellate Tribunal ITAT Pune, setting aside the CIT(A)'s order.