2015 (1) TMI 698 - HC - Income Tax

Eligiblity for the claim of deduction u/s. 80IB(10) - Held that - The Appeal raises substantial questions of law. The Registrar (Judicial)/Registrar High Court Original Side Bombay to ensure that the original record in relation to this Appeal is summoned from the Tribunal and offered for inspection of the parties. This paper book is treated sufficient for the purpose of admission of this Appeal. However the Registry must further ensure preparation of complete paper book in accordance with the Rules. The Registry in the first instance must send intimation of admission of this Appeal enclosing therewith a copy of this order so as to enable the Tribunal to act accordingly.

Summary

Issues:
1. Entitlement of deduction under Section 80IB(10) of the Income Tax Act, 1961.
2. Applicability of Rule 18BBB(2) of the Income Tax Rules.

Analysis:
1. The judges, S.C. Dharmadhikari and S.P. Deshmukh, heard arguments from Mr. Vimal Gupta, Senior Counsel for the Revenue, regarding the entitlement of deduction under Section 80IB(10) and the applicability of Rule 18BBB(2) of the Income Tax Rules. They reviewed the order of the Income Tax Appellate Tribunal which discussed these issues. The judges found that the Appeal raised substantial questions of law and admitted the following substantial questions for consideration:
a. Whether the project's approval and commencement dates met the requirements for claiming deduction under Section 80IB(10).
b. Whether the project's location on a land of less than an acre affected its eligibility for the deduction under Section 80IB(10).
c. Whether the audit report's compliance with Rule 18BBB(2) was satisfactory, as highlighted by the CIT(A) in his order.

2. Mr. Naniwadekar, representing the respondent, waived service. The judges directed the Registrar, High Court, Original Side, Bombay to obtain the original record from the Tribunal for inspection by the parties. They considered the current paper book sufficient for the Appeal's admission but instructed the Registry to prepare a complete paper book as per the Rules. The Registry was also tasked with informing the Tribunal about the Appeal's admission and providing a copy of the order for necessary action.