Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (11) TMI 550 - AT - Income TaxDeduction u/s. 80IB(10) - addition on account of "reduction of sales" - Held that:- The assessee at the time of refund of amount instead of debiting the amount to P & L account reduce the same from the sales consideration. This fact has not been disputed by the Revenue. Only contention raised by the Department is that the refund of amount was in respect of sales made in assessment year 2009-10. We find that as per books of assessee, reverse entry has been passed by the assessee on 31- 03-2010 i.e. in the period relevant to the assessment year 2010-11. It is an undisputed fact that the amount of ₹ 1,10,00,000/- has been offered to tax in assessment year 2009-10. Now that the assessee has refunded the said amount, the assessee is entitled to claim the same on account of reduction of sale. We do not find any infirmity in the order of Commissioner of Income Tax (Appeals) in deleting the addition. Accordingly, ground No. 1 raised in the appeal is dismissed. Addition on account of receipts allegedly not eligible for deduction u/s. 80IB - Held that:- The assessee has developed a housing project "Green Meadows" and claimed deduction u/s. 80IB on the said project. During the course of assessment proceedings the Assessing Officer observed that certain receipts viz. amount received on account of area difference, electricity charges, extra amenities, extra work, legal charges, society charges and parking charges have no direct nexus with the profits of housing project. We do not find any infirmity in the order of Commissioner of Income Tax (Appeals) in allowing deduction u/s. 80IB(10) on the aforesaid receipts. The receipts are in-extricably linked to development of the housing project. Allowing of deduction u/s. 80IB(10) on pro-rata basis - Held that:- Despite the fact two residential units were having built up area exceeding 1500 sq. ft. Commissioner of Income Tax (Appeals) has disallowed proportionate deduction u/s. 80IB(10) on the said flats. Allowability of pro-rata deduction u/s. 80IB(10) on eligible residential units is no more res integra. No infirmity in the action of Commissioner of Income Tax (Appeals) in allowing proportionate deduction. Accordingly, ground No. 3 raised in the appeal by the Revenue is dismissed. Allowance of liquidated damages - delay in handing over the possession - Held that:- The final settlement between the parties took place on 10-01-2010 i.e. in the period relevant to the assessment year 2010-11. Since, the amount got crystallized in the period relevant to the assessment year under appeal, the assessee rightly claimed the same as expenditure in assessment year 2010-11. In the backdrop of these facts the Commissioner of Income Tax (Appeals) allowed assessee‟s claim of liquidated damages. The facts have not been disputed by the Revenue. There is no reason to interfere with the well reasoned findings of the Commissioner of Income Tax (Appeals).
|