Tax Tribunal Invalidates Commissioner's Order, Upholds Assessee's Deduction Rights

The Tribunal held that the Commissioner's revision of the assessment order u/s 263 was without jurisdiction, directing the Assessing Officer to maintain the original order granting deduction u/s 80 IB. Regarding eligibility for deduction u/s 80IB(10), the Tribunal affirmed the assessee's entitlement, emphasizing that ownership of the property was not a prerequisite for claiming the deduction. The High Court upheld the Tribunal's decision, rejecting the Revenue's appeal and confirming the assessee's right to relief under Section 80 IB of the Income Tax Act.

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Issues involved:
The judgment involves the following Issues:
1. Revision of assessment order u/s 263 of the Income Tax Act.
2. Eligibility for deduction u/s 80IB(10) for developing and building housing projects.

Issue 1: Revision of assessment order u/s 263:
The Revenue appealed against the order of the Income Tax Appellate Tribunal regarding the revision of the assessment order u/s 263. The Commissioner of Income Tax (Appeals) sought to revise the order granting deduction u/s 80 IB of the Income Tax Act, stating that the assessee was not the owner of the property but acted as a builder. The Tribunal held that the Commissioner's order was without jurisdiction, as the Assessing Officer's view was valid based on precedent. The Tribunal disagreed with the Commissioner's revision and directed the Assessing Officer to revise the order accordingly.

Issue 2: Eligibility for deduction u/s 80IB(10):
The Tribunal considered the eligibility of the assessee for deduction u/s 80IB(10) for developing and building housing projects. The Tribunal concluded that the assessee, though not the owner of the property, was entitled to the deduction as it was engaged in developing and building housing projects approved by the local authority. The Tribunal allowed the assessee's appeal, stating that ownership of the property was not a prerequisite for claiming the deduction u/s 80IB(10). The High Court confirmed the Tribunal's decision, rejecting the Revenue's appeal and upholding the assessee's entitlement to relief under Section 80 IB of the Act.

Separate Judgement:
The judgment was delivered by Honourable Mrs. Justice Chitra Venkataraman and Honourable Mr. Justice K. Ravichandrabaabu, JJ.

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