AI Structured Summary
Not yet generated for this judgment
Judgment
The present appeal under Section 260A of the Income Tax Act (''Act'') by the Revenue is directed against an order dated 17th December 2014 passed by the Income Tax Appellate Tribunal (''ITAT'') in ITA No. 1629/Del/2013 for the Assessment Year (''AY'') 2009-10.
The Appellant seeks to urge that disallowance of deduction under Section 80IB(10) of the Act could not have been restricted by the CIT(Appeals) and the ITAT to the individual residential units that did not comply with the requirement under Section 80IB(10)(c) of the Act.
The Respondent Assessee engaged in the business of real estate developers and builders was subject to a survey action under Section 133A on 27th March 2008. Several additions were made in the assessment. The claim of the Assessee to the extent of Rs. 1,92,87,473 under Section 80IB(10) was disallowed by the Assessing Officer (''AO''). There were two residential blocks constructed. The objection was that out of 122 dwelling units constructed by the Respondent Assessee in one block 50 units exceeded the maximum limit and in the other project 26 units violated the maximum limit.
The CIT (Appeals) in the order dated 4th January 2013 accepted the plea of the Assessee and following the decision of the Calcutta High Court, dated 5th August 2007 in ITA No. 458 of 2006 (in the case of Bengal Ambuja Housing Development Ltd.) directed the AO to allow the proportionate deduction keeping in view the number of flats that complied with the requirement of Section 80IB(10)(c). This was affirmed by the ITAT in the impugned order.
Having heard Ms. Suruchi Aggarwal, learned Senior standing counsel for the Appellant, and having examined Section 80IB(10) of the Act, the Court finds that the interpretation placed on sub-clause (c) of clause (10) by the CIT (A) and affirmed by the ITAT is plausible. The provision is capable of being construed in a manner that is beneficial to the Assessee by allowing the deduction pro rata the number of residential units that have complied with the requirement in Section 80IB(10)(c) viz., that the maximum build up area should not exceed 1000 sq.ft. It is not in dispute that as far as the units in the two blocks constructed by the Assessee all other requirements of Section 80IB(10)(c) stand fulfilled.
Consequently, the Court does not find any substantial question of law arising from the impugned order of the ITAT.
The appeal is dismissed.