2014 (12) TMI 1343 - HC - Income Tax

Gujarat HC grants tax appeal for deductions under section 80IB(10)

The Gujarat HC allowed the tax appeal, holding that the taxpayer was entitled to deductions under section 80IB(10) for the relevant project based on the ... Deduction u/s 80IB(10) - HELD THAT:- Present Tax Appeal is ADMITTED to consider the following substantial questions of law: “(1) Whether the ITAT was justified in allowing the deduction u/s 80IB(10) of the Act, without appreciating the fact that the project was sanctioned with commercial area more than the specified limit as prescribed in clause (d) of section 80IB(10) of the Act and therefore not eligible for deduction? (2) Whether the ITAT was justified in allowing the deduction u/s 80IB(10) of the Act, without appreciating the fact that the completion certificate for the shops as well as the residential flats had not been obtained before the prescribed time limit i.e. 31.03.2008 as stipulated in clause (a) of section 80IB(10) of the Act? (3) Whether the ITAT is correct in facts and circumstances of the case in allowing the deduction u/s 80IB(10) of the Act, without appreciating the fact that the assessee has entered into separate agreements with individual buyers for construction works and thus carried out construction of residential houses as a contractor, rendering it ineligible for deduction u/s 80IB(10) of the Act?” The Gujarat High Court admitted a tax appeal to consider substantial questions of law related to deductions under section 80IB(10) of the Income Tax Act. The questions included issues regarding project specifications, completion certificates, and eligibility criteria for deductions.