2020 (12) TMI 354 - HC - Income Tax

Proportionate claim u/s 80IB(10) - as per revenue assessee had built 12 pent houses each exceeding 1,500 sq.ft. as a part and parcel of the residential project, thus, violating the basic condition of affordable housing project - HELD THAT - The substantial question of law framed in this appeal has already been answered against revenue by this Court 2020 (9) TMI 1137 - KARNATAKA HIGH COURT The aforesaid aspect of the matter could not be disputed by the learned counsel for the revenue. - Decided in favour of assessee.

Summary

Issues:
Appeal under Section 260-A of the Income Tax Act, 1961 regarding the allowance of proportionate claim to the assessee company under section 80IB(10) for Assessment Year 2006-07.

Analysis:
The High Court of Karnataka heard an appeal under Section 260-A of the Income Tax Act, 1961, concerning the allowance of a proportionate claim to the assessee company under section 80IB(10) for the Assessment Year 2006-07. The appeal was admitted to consider a substantial question of law related to whether the Tribunal was justified in allowing the claim to the assessee company without appreciating the alleged violation of the basic condition of an affordable housing project. The matter was previously addressed in a separate judgment dated 22.09.2020 in ITA No.54/2013, where the substantial question of law was answered against the revenue. In line with the reasoning provided in the earlier judgment, the High Court concluded that the substantial question of law framed in this appeal is answered against the revenue and in favor of the assessee.

Therefore, the High Court dismissed the appeal, ruling in favor of the assessee company.