Tribunal upholds assessee's deduction for housing project 'Kumar Primavera' under section 80IB(10), grants revenue recognition.

The Tribunal dismissed the Revenue's appeal challenging the allowance of deduction under section 80IB(10) for the housing project 'Kumar Primavera'. The CIT(A)'s decision to categorize buildings A-1 and A-2 as Phase-I and buildings A-3 to A-8 as Phase-II was upheld, affirming the eligibility of the assessee for the deduction. Additionally, the Tribunal allowed the assessee's Cross Objection regarding revenue recognition for 25 flats, holding that the profit from these flats qualified for the deduction under section 80IB(10).

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Issues:
1. Allowance of deduction under section 80IB(10) for housing project 'Kumar Primavera'
2. Eligibility of the project for deduction under section 80IB(10)
3. Pre-ponment of revenue recognition for certain flats

Analysis:
1. The appeal filed by the Revenue challenges the order of CIT(A) allowing deduction under section 80IB(10) for the housing project 'Kumar Primavera'. The Revenue contends that the CIT(A) erred in deleting the disallowance made by the Assessing Officer regarding the deduction claimed by the assessee. The Revenue argues that the CIT(A) incorrectly treated buildings A-1 and A-2 as a separate housing project from buildings A-3 to A-8, leading to the allowance of the deduction. The Revenue further disputes the completion dates of the buildings and the interpretation of the statutory provisions governing the deduction under section 80IB(10).

2. The CIT(A) accepted the claim of the assessee and allowed the deduction under section 80IB(10) after considering the submissions and facts of the case. The CIT(A) categorized buildings A-1 and A-2 as part of Phase-I and buildings A-3 to A-8 as Phase-II, treating them as separate projects. The Tribunal, following the decision in the assessee's previous cases, upheld the eligibility of the assessee to claim deduction under section 80IB(10) for all residential buildings in both phases. The completion date of Phase-II was determined from the commencement certificate issued for buildings A-3 to A-8, leading to the dismissal of the Revenue's appeal.

3. The Cross Objection raised by the assessee challenges the pre-ponment of revenue recognition for 25 flats where full payments were received before a specific date. The Assessing Officer and CIT(A) disagreed with the assessee's stance on revenue recognition. However, since the income from the project was deemed eligible for deduction under section 80IB(10), the profit from the 25 flats in question also qualified for the deduction. Therefore, the Tribunal allowed the alternate plea of the assessee in the Cross Objection, holding that the assessee is entitled to the claim of deduction under section 80IB(10) for the profit derived from the 25 flats.

In conclusion, the Tribunal dismissed the Revenue's appeal, confirmed the order of the CIT(A) regarding eligibility for deduction under section 80IB(10), and allowed the assessee's Cross Objection concerning revenue recognition for the specified flats.

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