Bombay High Court upholds ITAT decision on deduction under section 80IB(10) for AY 2007-08

The High Court of Bombay dismissed the appeal challenging the Income Tax Appellate Tribunal's decision regarding the deduction under section 80IB(10) of the Income Tax Act for Assessment Year 2007-08. The court found that the Tribunal's decision to allow the deduction for wings "A" to "F" without considering wing "G" was justified based on a previous court ruling. As the question in dispute was settled in favor of the Respondent-Assessee, the court held that no substantial question of law arose for consideration and thus dismissed the appeal with no order as to costs.

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Issues:
Challenge to order of Income Tax Appellate Tribunal regarding deduction u/s. 80IB(10) of the Income Tax Act, 1961 for Assessment Year 2007-08.

Analysis:
The High Court of Bombay heard an appeal challenging the order of the Income Tax Appellate Tribunal (the Tribunal) for the Assessment Year 2007-08. The main question of law raised was whether the Tribunal was justified in proportionately allowing the deduction u/s. 80IB(10) of the Income Tax Act, 1961 for wings "A" to "F" without considering that the deduction was claimed for the entire project, inclusive of wing "G". The Appellant's Counsel acknowledged that the Tribunal's decision was based on a previous court ruling in CIT v/s. Vandana Properties 353 ITR 36. The Counsel mentioned that the appeal was filed due to the Revenue challenging the Vandana Properties decision in the Supreme Court. The High Court noted that the question in dispute was settled in favor of the Respondent-Assessee based on the previous ruling, and hence, no substantial question of law arose for consideration. Consequently, the Appeal was dismissed with no order as to costs.

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