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TMI Blog2016 (2) TMI 695X X X X Extracts X X X X X X X X Extracts X X X X ..... , we hold that the assessee is entitled to prorata deduction under section 80IB(10) of the Act on the completed flats. In this regard, we modify the directions of the CIT(A). - Decided in favour of assessee - ITA No.1140/PN/2014, CO No.31/PN/2015 - - - Dated:- 15-1-2016 - MS. SUSHMA CHOWLA, JM AND SHRI PRADIP KUMAR KEDIA, AM For The Revenue : Shri Rajeev Kumar (CIT) For The Assessee : Shri Rajendra Agiwal ORDER PER PRADIP KUMAR KEDIA, AM : The captioned appeal filed by the Revenue is against the order of CIT(A)-I, Pune dated 28.11.2013 relating to assessment year 2010-11 passed under section 143(3) of the Income-tax Act, 1961 (in short the Act ). The assessee has also filed Cross Objection against the appeal of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , it was not entitled to deduction u/s. 80IB(10) in respect of the Kumar Primavera project. 5. The Ld. Commissioner of Income-tax(Appeals) erred failing to appreciate that the plan in respect of buildings A-3 to A-8 were a mere revision of the original plan and further that buildings A-3 to A-8 were merely in the nature of additional constructions on the same plot of 24902.715 Sq. mtrs. in respect of which the original plan had been sanctioned and the original commencement certificate had been issued on 02.02.2005. 6. The Ld. Commissioner of Income-tax(Appeals) erred in failing to consider that for the purpose of computing the limitation period u/s. 80IB(10), the date of first approval has to be taken into account and as per E ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... moter and Builder. In the return of income for the assessment year 2010-11, the assessee declared a total income of ₹ 4,03,06,400/-. The assessee, inter-alia, claimed deduction under section 80IB(10) of ₹ 13,11,33,486/- in the computation of income in respect of its project Kumar Primavera . The assessee allegedly developed the aforesaid project in two phases. The Phase-I consists of two residential buildings A-6 and A-7, subsequently renamed as A-1 and A-2 and Phase-II comprises of six residential buildings A-3 to A-8. The certificate of commencement in respect of phase-I was obtained on 02-02-2005. The phase-I of the project was approved for parking + 7 floors, whereas the commencement certificate in respect of phase-II was o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the project on or before 31-03-2009 i.e. within 4 years from the end of the financial year in which the first commencement certificate was obtained the assessee has not complied with the basic condition for claiming deduction under section 80IB(10). The Assessing Officer vide order dated 30-12-2010 rejected the claim of the deduction under section 80IB(10) for assessment year 2008-09. For identical reasons, the claim of assessee under section 80IB(10) was denied by the Assessing Officer in the assessment year 2009-10 and 2010-11. 6. Aggrieved by the assessment order, the assessee preferred appeal before the CIT(A). The CIT(A) after considering the submissions of the assessee and appreciation of the facts of the case, accepted the clai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Eligibility of deduction under section 80IB(10) of the Act. 1. Erred in challenging the order of CIT(A) on eligibility of the project Kumar Primavera under section 80IB(10) of the Act, by contending that, Buildings A-1, A-2 and Buildings A-3 to A-8 do not constitute two separate projects and are part of one single project, thereby not eligible for deduction under section 80IB(10) of the Act; (as project not completed within the time limit of section 80IB(10) of the Act) II. On the facts and in the circumstances of the case the Commissioner of Income Tax (Appeals) I ( the learned CIT(A) ): Pre-ponment of revenue 2. Without prejudice to the department s appeal , erred in upholding action of the lear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing Officer and also the CIT(A) did not agree with the submissions of the assessee. 13. Since the income from the building project is held to be eligible for deduction under section 80IB(10) of the Act as noted hereinabove, the net profit computed from the above-said flat would also quality for deduction under section 80IB(10) of the Act. Thus, in the present case, such alleged deferment of income would be revenue neutral as entire profits derived from the project are held to be deductible from income under section 80IB(10) of the Act. Accordingly, we hold that the assessee is entitled to the claim of deduction under section 80IB(10) of the Act on the aforesaid profit computed in respect of 25 flats. Thus, we allow the alternate plea of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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