2022 (5) TMI 743 - AT - Income Tax

Deduction u/s 80IB(10) - proportionate deduction - claim of the assessee for the deduction was disallowed for the A.Ys. 2006-07 and 2007-08 mainly on the ground that the completion certificate was not obtained from the local authority by 31.03.2008 owing to non-completion of the said building by the due date - assessee had projects in Sector 1 and Sector 7, for which development charges were paid as a single unified project but AO jettisoned the contention of the assessee that the projects on Sector 1 and Sector 7 were different and rejected the assessee‟s contention for giving proportionate deduction in respect of built-up area completed before 31.03.2008 - HELD THAT - It is seen that the issue under consideration came up for consideration before the Tribunal. Vide its afore-referred order, the Tribunal held that Sector 1 and Sector 7 were different projects; housing project in Sector 1 was completed prior to the stipulated date and hence deduction u/s 80IB(10) of the Act was available; housing project in Sector 7 was not completed and hence the assessee was entitled to proportionate deduction u/s 80IB(10). Admittedly, there is no change in the facts and circumstances of the case. Respectfully following the precedent, we hold that the ld. CIT(A) was fully justified in following the order of Tribunal in holding that the assessee was entitled to deduction u/s 80IB(10) of the Act in respect of Sector 7 project on proportionate basis.- Decided against revenue.

Summary

Issues:
1. Disallowance of deduction u/s 80IB(10) for A.Y. 2010-11
2. Entitlement to proportionate deduction u/s 80IB(10) for Sector 7 project
3. Similarity of facts and circumstances in cross-appeals for A.Ys. 2011-12, 2012-13, 2014-15 to 2016-17

Analysis:
1. Disallowance of deduction u/s 80IB(10) for A.Y. 2010-11: The Assessing Officer disallowed the deduction claimed by the assessee u/s 80IB(10) of the Income-tax Act, 1961 for the A.Y. 2010-11, amounting to Rs.1.29 crores. This disallowance was based on the grounds that the completion certificate was not obtained from the local authority by the due date, and the projects in Sector 1 and Sector 7 were considered a single unified project. However, the ld. CIT(A) allowed the deduction on a proportionate basis for the project at Sector 7. The Tribunal upheld this decision, stating that both Sector 1 and Sector 7 were different projects, and the assessee was entitled to the deduction on a proportionate basis for the Sector 7 project.

2. Entitlement to proportionate deduction u/s 80IB(10) for Sector 7 project: The Tribunal affirmed that the assessee was entitled to claim deduction u/s 80IB(10) of the Act in respect of the Sector 7 project on a proportionate basis. This decision was based on the fact that the housing project in Sector 7 was not completed, allowing the assessee to claim a proportionate deduction. The Tribunal's decision was in line with the precedent set in a previous order concerning similar issues.

3. Similarity of facts and circumstances in cross-appeals for A.Ys. 2011-12, 2012-13, 2014-15 to 2016-17: The Tribunal noted that the facts and circumstances of the cross-appeals for the mentioned assessment years were similar to those already considered and decided in previous orders for A.Ys. 2006-07, 2007-08, and 2009-10. The ld. CIT(A) followed the precedent set in the previous order, and the Tribunal upheld this decision, finding no grounds for interference in the impugned order.

In conclusion, all the appeals by the assessee and the Revenue were dismissed, and the Tribunal pronounced the order on 13th May 2022, based on the consolidated analysis of the common issues raised in the appeals.