2016 (2) TMI 1143 - HC - Income Tax

Proportionately allowing the deduction u/s. 80IB(10) - Tribunal justifcation in upholding the decision of the CIT(A) in proportionately allowing the deduction u/s. 80IB(10) of the I T Act, 1961 out of profits in respect of wings A to F - Held that - The impugned order of the Tribunal while dismissing the Revenue s appeal, had followed the decision of this Court in CIT v/s. Vandana Properties 2012 (4) TMI 54 - BOMBAY HIGH COURT Learned Counsel further states that the present appeal memo has been filed only in view of the fact that the Revenue has challenged the decision of this Court in Vandana Properties (supra), in the Apex Court and the same is awaiting disposal. The question as formulated stands concluded in favour of the Respondent-Assessee and against the Revenue.

Summary

Issues:
Challenge to order of Income Tax Appellate Tribunal regarding deduction u/s. 80IB(10) of the Income Tax Act, 1961 for Assessment Year 2007-08.

Analysis:
The High Court of Bombay heard an appeal challenging the order of the Income Tax Appellate Tribunal (the Tribunal) for the Assessment Year 2007-08. The main question of law raised was whether the Tribunal was justified in proportionately allowing the deduction u/s. 80IB(10) of the Income Tax Act, 1961 for wings "A" to "F" without considering that the deduction was claimed for the entire project, inclusive of wing "G". The Appellant's Counsel acknowledged that the Tribunal's decision was based on a previous court ruling in CIT v/s. Vandana Properties 353 ITR 36. The Counsel mentioned that the appeal was filed due to the Revenue challenging the Vandana Properties decision in the Supreme Court. The High Court noted that the question in dispute was settled in favor of the Respondent-Assessee based on the previous ruling, and hence, no substantial question of law arose for consideration. Consequently, the Appeal was dismissed with no order as to costs.