2015 (5) TMI 1217 - AT - Income Tax

Deduction u/s 80IB(10) - HELD THAT - As in assessee own case 2013 (11) TMI 1745 - ITAT CHENNAI Tribunal has allowed the claim of the assessee. Since, the very project is considered by the Assessing Officer in the impugned assessment year, viz., Chettinad Enclave, and the Tribunal already held that the assessee is a developer and entitled for deduction under sec.80IB(10) of the Act, we are inclined to dismiss the appeal of the Revenue for this assessment year also.

Summary

Issues:
- Appeal against the Commissioner of Income-tax(Appeals) order allowing deduction under sec.80IB(10) of the Act.
- Whether the assessee is entitled to deduction under sec.80IB(10) for the assessment year 2010-11.

Analysis:
1. The appeal by the Revenue challenges the order of the Commissioner of Income-tax(Appeals) allowing a deduction under sec.80IB(10) of the Act to the assessee amounting to Rs. 18,17,99,281. The Revenue contends that the Commissioner erred in granting this deduction.

2. The Tribunal noted that the issue of deduction under sec.80IB(10) was previously decided in favor of the assessee by a co-ordinate Bench in a prior case for the assessment year 2009-10. The Tribunal further referenced a similar decision for the assessment year 2010-11. Since the project in question, Chettinad Enclave, was already considered by the Assessing Officer and the Tribunal had previously ruled in favor of the assessee being entitled to the deduction, the appeal by the Revenue was dismissed for the current assessment year as well.

3. The Tribunal emphasized that based on previous decisions and the nature of the project, it was clear that the assessee qualified as a developer and was entitled to the deduction under sec.80IB(10) of the Act. Therefore, the Tribunal upheld the claim of the assessee for the assessment year 2010-11, in line with its earlier rulings.

4. Consequently, the Tribunal dismissed the appeal of the Revenue, affirming the decision of the Commissioner of Income-tax(Appeals) to allow the deduction under sec.80IB(10) to the assessee. The order was pronounced on May 22, 2015, in Chennai.

This detailed analysis of the judgment highlights the key issues raised in the appeal, the Tribunal's reasoning based on precedent and the specific provisions of the Act, and the final decision reached regarding the deduction under sec.80IB(10) for the assessment year 2010-11.