2013 (3) TMI 801 - HC - Income Tax

Summary

Issues involved: Appeal by revenue for assessment year 2006-07 regarding disallowance under section 80IB of the Income Tax Act, 1961 on sale proceeds of stilt parking and common office expenses of Poiser Project, and common expenses relating to Poiser Project and Saki Naka Project.

Issue (a):
The Tribunal allowed the appeal of the assessee and deleted the disallowance under section 80IB of the Income Tax Act, 1961 on sale proceeds of stilt parking and common office expenses of Poiser Project. The High Court admitted the appeal on this issue.

Details:
The Tribunal upheld the order of the CIT(A) and found that the assessee maintained separate accounts for Poisar project and Saki Naka project. It was noted that the Assessing Officer presumed that the assessee debited Poisar project expenses to Saki Naka Project to benefit under section 80IB(10) of the Act. However, the Tribunal found that the expenses for Poisar project were properly accounted for and no defects were pointed out in the books of account. As this decision was based on factual findings, the High Court declined to entertain this question.

Issue (b):
The Tribunal also allowed the appeal of the assessee and deleted the disallowance under Section 80IB of the Income Tax Act, 1961 on common expenses related to Poiser Project and Saki Naka Project. The High Court did not entertain this issue as it was based on factual findings.

Conclusion:
The High Court admitted the appeal on question (a) regarding the disallowance under section 80IB of the Income Tax Act, 1961 on sale proceeds of stilt parking and common office expenses of Poiser Project. The Tribunal's decision on question (b) regarding common expenses between Poiser Project and Saki Naka Project was not entertained due to being based on factual findings.