2023 (9) TMI 895 - HC - Income Tax

Deduction u/s 80IB(10) - claim denied as there were separate approvals for each plots and therefore, the condition of approval of a housing project is not satisfied - HELD THAT - A.O. did not bear in mind the specific provisions laid down in the Act which leave no room to doubt that in a case where the approval in respect of the housing project is obtained more than once, such housing project shall be deemed to have been approved on the date on which the building plan of such housing project is first approved by the local authority. After having regard to the facts of the case, relevant provisions of the Act and the decision of the jurisdiction High Court in the case of B.M. and Brothers 2013 (10) TMI 290 - GUJARAT HIGH COURT on the issue, in my considered opinion, the assessee was eligible to avail claim of deduction u/s. 80IB (10) of the Act on the profits earned from the project under consideration. Accordingly, this ground of appeal is allowed.

Summary

Issues involved:
The judgment involves a tax appeal challenging an order passed by the Income Tax Appellate Tribunal regarding the deduction claimed under Section 80IB(10) of the Income Tax Act, 1961 for the assessment year 2009-10.

Deduction under Section 80IB(10):
The appellant claimed a deduction of Rs.3,49,29,737 under Section 80IB(10) of the Act. However, the Assessing Officer disallowed the claim as the housing project was not approved by the local authority. The Assessing Officer found that separate building development permissions were obtained for each unit, leading to the conclusion that no housing project was approved in a composite form. Consequently, the deduction was disallowed.

Appellate Proceedings:
Upon appeal, the CIT(A) considered previous decisions and granted the deductions based on the approval of the housing project named 'Maninagar' at Rajkot, which was approved before 01/04/2004 and had constructions completed before 31/03/2008. The appellate authority held that the assessee was eligible for the deduction under Section 80IB(10) of the Act, as the project met the necessary criteria.

Tribunal's Decision:
The Tribunal, in the appellant's own case for the assessment year 2011-12, upheld the decision of the CIT(A) and declined to interfere based on similar facts and the decision in the case of B.M. and Brothers. By relying on its previous decisions and the decision in the cited case, the Tribunal found no reason to entertain the appeal.

Conclusion:
After reviewing the orders of the CIT(A) and the Tribunal, the court found no substantial question of law to be considered. Consequently, the appeal was dismissed without costs.