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2021 (1) TMI 362 - AT - Income TaxDeduction u/s 80IB(10) - whether the deduction under section 80IB(10) can be allowed on proportionate basis in respect of residential units having a built up area of 1500 sq.ft. or less? - HELD THAT:- The factual background was that the assessee was engaged in the business of real estate development. The assessee deduction under Section 80IB(10) of the Act to the extent of ₹ 25,08,21,669/- in respect of profits of two projects viz., Brigade Gateway and Brigade Metropolis. Commissioner of Income Tax (Appeals) who by an order dated 14.11.2012 allowed the claim of the assessee for deduction under Section 80IB(10) of the Act. On further appeal by the revenue the Income Tax Appellate Tribunal upheld the order of the CIT(A). On further appeal by the Revenue, the Hon’ble Karnataka High Court answered the question of law in favour of the Assessee by following order in the case of Commissioner of Income Tax vs. Brigade Enterprises Ltd [2020 (9) TMI 1137 - KARNATAKA HIGH COURT] .On plain reading of clause (c) of Section 80IB(10) of the Act, it is evident that the same does not exclude the principle of proportionality in any manner. Therefore, we hold that the Commissioner of Income Tax (Appeals) as well as the Tribunal have rightly found that the assessee has complied with the requirement contained in clause (c) of Section 80IB(10) of the Act. Submissions of the assessee before CIT(A) that the DVO has not considered the units in County – I project and therefore the report of the DVO cannot be said to be final in the matter - We do not find any merit in the ground No.3 raised by the Revenue. In any event, the physical measurement has to be taken by the AO and the AO is at liberty to take physical measurement in an appropriate manner and therefore there cannot be any grievance to the Revenue. For the reasons given above, we find no merit in the appeal by the Revenue.
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