2020 (9) TMI 195 - AT - Income Tax

Deduction u/s 80IB(10) - revenue contended that assessee is not eligible for deduction since the matter is sub-judice regarding deduction u/s 80IB before High Court - HELD THAT - As carefully gone through the orders passed by the Tax Authorities. While allowing the assessee s appeal Ld. CIT(A) rightly followed the decision of the ITAT Hyderabad Bench 2015 (10) TMI 80 - ITAT HYDERABAD in assessee s own case wherein an identical issue was decided by the Tribunal in favour of the assessee. Therefore we are of the view that the order passed by the ld. CIT(A) is fair and reasonable and it does not call for any interference. - Decided against revenue.

Summary

Issues Involved:
1. Eligibility for deduction u/s 80IB(10) of the IT Act, 1961 for a Partnership Firm engaged in real estate business for AY 2015-16.

Detailed Analysis:
1. The assessee, a Partnership Firm engaged in real estate business, filed its return of income for AY 2015-16 claiming a deduction u/s 80IB(10) of the IT Act, 1961. The Assessing Officer (AO) denied the claim, stating that the matter was sub-judice before the High Court. The assessee contended that the claim had been allowed in previous years and challenged the denial.

2. The CIT (A) considered the submissions and allowed the appeal based on a decision of the ITAT Hyderabad Bench in the assessee's own case for AY 2010-11. The Revenue appealed to the Tribunal, arguing that the construction was not completed by the specified date, hence the deduction should not be allowed u/s 80IB(10). The Departmental Representative supported the AO's order, while the Assessee's Counsel defended the CIT (A)'s decision.

3. The Tribunal reviewed the submissions and the previous orders. It noted that the CIT (A) had rightly followed the ITAT Hyderabad Bench decision in the assessee's case, which favored the assessee. Consequently, the Tribunal found the CIT (A)'s order fair and reasonable, leading to the dismissal of the Revenue's appeal.

4. Therefore, the Tribunal upheld the CIT (A)'s decision, dismissing the Revenue's appeal and affirming the assessee's eligibility for deduction u/s 80IB(10) for AY 2015-16. The judgment was pronounced on 3rd September 2020.