9911796707
|
Home
Issues involved: The judgment involves the assessment year 2005-06, the claim of deduction under section 80-IB(10) of the Income-tax Act, 1961, and the validity of reassessment under section 147.
Assessment of Deduction under Section 80-IB(10): The assessee, a company engaged in building residential flats, claimed deduction under section 80-IB(10) for the assessment year 2005-06. The Assessing Officer initially accepted the claim but later, upon scrutiny, withdrew the deduction stating that the project completion timeline requirement was not met. The Commissioner of Income-tax (Appeals) found the objections raised by the Assessing Officer unsustainable in law and allowed the deduction, setting aside the income-escaping assessment order. The Tribunal upheld the Commissioner's decision, citing precedents where the legal ownership of land was not a prerequisite for claiming the deduction under section 80-IB(10), as long as other statutory conditions were fulfilled. The Tribunal concluded that the assessee was entitled to the benefit of section 80-IB(10) as a developer of housing projects. Validity of Reassessment under Section 147: The Revenue contended that the reassessment was based on new information. However, the Commissioner of Income-tax (Appeals) held that the original assessment was thorough and the reassessment was merely a change of opinion, citing judicial precedents that reassessment cannot be done solely on the basis of a change of opinion. The Tribunal agreed with the Commissioner, stating that no new material was presented for reassessment, and the Assessing Officer's differing view did not justify income-escaping assessment. The Tribunal upheld the Commissioner's decision, declaring the reassessment invalid in law.
|
