9911796707
TMI Blog2014 (10) TMI 973X X X X Extracts X X X X X X X X Extracts X X X X ..... ible income for the purpose of deduction u/s 80IB(10) we find, the Income Tax Authorities has not gone into the facts relating to this income. As per the Ld Counsel, the same constitutes reimbursements of maintenance charges by the flat owners. This is the reimbursement of expenses incurred by the assessee to the housing society of the housing project. Such reimbursement does not constitute income of the assessee. The Revenue Authorities have wrongly held it as income and treated the same as ineligible for claim of deduction - this matter should visit the file of the AO for fresh adjudication after analyzing the relevant facts. - Decided in favour of assessee for statistical purposes. - I.T.A. No.2168/M/2009, 423/M/2010 and 2693/M/2011 - - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pment of housing project which is allowable for deduction u/s 80IB of the Act. There is no dispute about the project and the allowability of deduction of profits relatable to the sale proceeds of the flats of the said housing project. The only dispute relates to the allowability of deduction u/s 80IB of the Act in respect of the rental income earned by the assessee in respect of certain unsold flats held as stock-in-trade. It is the case of the assessee that some of the flats which are left unsold were let out under leave and license system‟ and the said income being directed connected to the flats, which is integral part of the housing project is also allowable for deduction u/s 80IB of the Act. He relied on various decisions in sup ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the assessee brought our attention to the judgment of the Hon‟ble Supreme Court in the case of Liberty India vs. CIT [2009] 317 ITR 218 (SC) for the proposition that the income with first degree nexus should be considered as eligible income for the purpose of claim of deduction uj/s 80IB of the Act. 6. On the other hand, Ld DR relied on the orders of the Revenue Authorities. 7. We have heard both the parties and perused the orders of the Revenue Authorities as well as cited decisions of the Tribunal and the higher judiciary. On hearing both the parties, we find, the said propositions mentioned above are helpful for deciding the issue on hand. Considering the fact that the unsold flats, being stock-in-trade of the housing pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of the same is an academic exercise. Accordingly, ground no.2 is dismissed. 10. In the result, appeal of the assessee is partly allowed for statistical purposes. ITA No. 2168/M/2009 (AY 2005-2006) ITA No.2693/M/2011 (AY 2007-2008) 11. These appeals are filed by the assessee for the AY 2005-06 and 2007-08. Since, the grounds raised in the present appeals are identical and the only difference is in figures, therefore, the adjudication given by us in the above paragraphs of this order with regard to ITA No.423/M/2010 for the AY 2006-2007 squarely applies to the instant appeals too. Considering the same, the ground no.1 raised by the assessee in both the instant appeals is partly allowed for statistical purposes. Ground no.2 is d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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