TMI Blog2015 (10) TMI 2631X X X X Extracts X X X X X X X X Extracts X X X X ..... for the legal proposition that the provisions for deductions and exemptions should be construed reasonably and in favour of the assessee. In our considered opinion since all the issues in hand have been covered either by the orders of the Tribunal in assessee’s own case or by respected coordinate Benches, therefore, we find no fallacy in the view taken by the learned CIT(Appeals). - Decided against revenue - I.T.A. Nos. 301 & 302/Nag/2013 - - - Dated:- 30-10-2015 - Mukul K. Shrawat (Judicial Member) And Shamim Yahya (Accountant Member) For the Appellant : Narendra Kane For the Respondent : K. P. Dewani ORDER Mukul K. Shrawat (Judicial Member) For both the years Revenue is in appeal emanating from consolidated order of learned CIT(Appeals)-I, Nagpur dated 15-05-2013. Revenue has raised identically worded grounds, reproduced from the leading assessment year 2006- 07 as under : 1. On the facts and in the circumstances of the case and in law, Ld. CIT(A) erred in deleting the addition of ₹ 1,06,05,579/- (Rs.96,30,269/- for AY 2007-08) on account of disallowance of deduction u/s 80IB(10). 2. On the facts and in the circumstances of the case and in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able with the AO, the approval from Town Planning Department, Nagpur was for the purpose of sub plotting of land. 2.2 It is worth to mention at this juncture that the AO was aware of the fact, as noted in the assessment order, that in the past i.e. for assessment years 2004- 05 and 2005-06 the claim of deduction u/s 80IB(10) was denied by the AO. When the matter was carried before the learned CIT(Appeals), the claim was allowed. Revenue has challenged that order, however, the respected ITAT had approved the relief granted by learned CIT(Appeals). The AO has discussed that on enquiry from NIT it was found that the permission was only for regularisation of plots which were sold to individual owners. One more observation of the AO was that the NIT was the only authority, being a planning authority, to grant permission for building plan to be constructed. After discussing the point-wise communication with the NIT, finally the AO has opined that it was very much clear that the assessee had not obtained any permission from the local authority for the housing project. Hence in the absence of any approval the deduction u/s 80IB(10) was not permissible. 2.3 In respect of Chintamani Na ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal in assessee s own case pertaining to the assessment years 2004-05 and 2005-06. On the issue of sanction obtained from the Gram Panchayat it was argued that the Collector can only regulate the use of land. However, for the purpose of construction of building within village area was to be granted by Gram Panchayat. Due to that reason the assessee had obtained permission for construction from the Sarpanch. It has also been pleaded that as per Maharashtra Regional and Town Planning Act, 1966 the authority can regulate the use of land and there is no provision for regulating the construction of building. It has also been pleaded that in number of decisions, Gram Panchayat of a village is held as local authority . The relevant paragraph from the order of learned CIT(Appeals) is extracted below: The appellant placed reliance on the following decisions of ITAT, wherein it has been held that Gram Panchayat of village is the local authority for the purpose of grant of approval of housing project to make the appellant eligible for the claim of deduction u/s 80IB(10) of I.T. Act, 1961. 1. ITAT s order in ITA No.556/Mds/2011 in the case of True Value Homes (India) Pvt. Ltd. Dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the construction made by the assessee for the housing project would qualify for deduction u/s 80IB(10). Finally the verdict of the Tribunal was in favour of the assessee as per the following observations: 7.1. In our considered opinion, the sequence of facts, i.e. acquiring piece of land for proposed implementation of housing projects, getting approval of layout plan for the entire land, wide publication in the Brochure for dwelling houses in the project, subsequent plotting of the same and construction of dwelling houses on such plot all should he considered together. Once we consider entire facts and sequence of events in totality, it is evident that the assessee developed housing project. Merely because two separate agreements were entered-into, one for sale of plot and other for construction thereon, it cannot be said that both agreements w:re ~.p~ndent agreements. The assessee has sold 'Bunglow', i.e, p lot of land_with construction there on. Sale price was of 'Bunglow'. No . buyer had any option to purchase only plot and did not get 'Bunglow' constructed thereon from the assessee. Merely because the transaction of sale of bunglow was completed ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
