Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2021 (1) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (1) TMI 789 - HC - Income TaxEligibility of Proportionate deduction u/s 80IB(10) - housing projects - satisfaction of the requirements as laid down in clauses (a) to (d) of sub-Section (1) of Section 80IB - individual units measuring less than 1500 sq.ft. one of the conditions to be fulfilled for claiming deduction is that the total built up area of the residential units in the housing project shall not exceed 1500 square feet in the city of Bangalore - HELD THAT:- On close scrutiny of the judgment rendered by this Court in BRIGADE ENTERPRISES LTD. [2020 (9) TMI 1137 - KARNATAKA HIGH COURT] it is evident that the first substantial question of law involved in this appeal is no longer res integra. Therefore, the first substantial question of law is answered against the revenue and in favour of the assessee. Method of accounting - percentage completion method or project completion method - Whether the assessee is entitled to the project completion method in the absence of regular books of accounts required to be maintained by the assessee? - HELD THAT:- The Tribunal relied upon the decision in the case of ‘PRESTIGE ESTATES PROJECTS LTD. [2020 (5) TMI 239 - KARNATAKA HIGH COURT] rendered by it and held that for the Assessment Year 2005- 06 the Accounting Standard 7 was not applicable to the real estate developers. Therefore, percentage completion method cannot be thrust upon the assessee and the assessee was right following the project completion method of accounting as per Accounting Standard 9. Besides it, once the first substantial question law is answered in favour of the assessee, the second substantial question of law is otherwise even rendered academic. The Institute of Chartered Accountants has issued a clarification wherein it has been clarified that revised Accounting Standard 7 is not applicable to the enterprises undertaking construction activities. Therefore, the second substantial question of law is also answered against the revenue and in favour of the assessee.
|