2019 (7) TMI 368 - AT - Income Tax

Deduction u/s 80IB(10) - certain plans were seized which revealed that the Quantum Park project has two flats with built up area of 2,000 sq.ft. per flat, whereas, in the other plan each floor had four flats having built up area of less than 1,000 sq.ft. per flat - as per revenue housing project does not fulfilled the conditions of section 80IB(10) - HELD THAT - After considering all aspects of the issue the Tribunal has categorically come to a finding that the Quantum Park project fulfills all the conditions of section 80IB(10). While doing so, the Tribunal has relied upon its own decision rendered in the case of Jivesh Developers and Properties Pvt. Ltd., 2018 (4) TMI 698 - ITAT MUMBAI . On a perusal of the aforesaid decision by the Tribunal, it is noticed that after going through all the details, the Tribunal has recorded a factual finding that the Quantum Park project satisfies all the conditions of section 80IB(10) . The reasons on the basis of which assessee s claim of deduction u/s 80IB(10) was disallowed in the preceding assessment years have been adopted by the AO while disallowing assessee s claim of deduction under section 80IB(10) in the impugned assessment year. That being the case, respectfully following the decisions of the Tribunal as referred to above, we uphold the decision of learned Commissioner (Appeals) on the issue. - Grounds raised are dismissed.

Summary

Issues:
Challenge to order allowing deduction under section 80IB(10) of the Income Tax Act for a residential project named "Quantum Park."

Analysis:
The appeal was filed by the Revenue against the order allowing the assessee's claim of deduction under section 80IB(10) of the Income Tax Act for the assessment year 2013-14. The assessee, a partnership firm engaged in construction, claimed the deduction for an amount of ?4,49,31,186. The Assessing Officer disallowed the deduction based on seized plans during a search operation, previous disallowances, and assessment orders under section 153C for prior years.

The first appellate authority allowed the deduction, noting similar decisions in the assessee's favor for previous years and for the joint venture partner in the project. The Departmental Representative argued against the deduction, citing non-fulfillment of section 80IB(10) conditions. The Authorized Representative highlighted Tribunal decisions favoring the assessee in similar cases.

The Tribunal found that the Quantum Park project met the conditions of section 80IB(10) after considering the joint development agreement and previous Tribunal decisions. The Tribunal upheld the Commissioner's decision based on previous Tribunal rulings, dismissing the Revenue's appeal. The Tribunal's decision was influenced by the satisfaction of all conditions of section 80IB(10) by the Quantum Park project, as established in previous Tribunal decisions.

In conclusion, the Tribunal upheld the Commissioner's decision to allow the deduction under section 80IB(10) for the Quantum Park project, based on previous Tribunal decisions and the project's compliance with the Act's conditions. The Revenue's appeal was dismissed, affirming the allowance of the deduction for the assessee.