High Court upholds ITAT order on Section 80IB(10) deduction for housing project.

The High Court dismissed the appeal challenging the ITAT order for AY 2006-07 and 2007-08 regarding the deduction under Section 80IB(10) for a housing project exceeding 2000 sq. ft. The court found that the issues raised did not constitute substantial questions of law based on existing legal precedents and factual findings. The appeal was disposed of without costs.

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Issues: Appeal challenging ITAT order for AY 2006-07 and 2007-08 - Deduction u/s. 80IB (10) for Housing Project exceeding 2000 sq. ft. - Violation of Section 80IB(10)(c) - Substantial question of law.

Analysis:

1. Deduction u/s. 80IB (10) for Housing Project exceeding 2000 sq. ft.:
The Tribunal's order dismissing the Revenue's appeal was based on the decision in Brahma Associates and Others. The Revenue's counsel acknowledged that the issue was settled in CIT Vs. Sarkar Builders, where the Supreme Court ruled against the Revenue. Consequently, the first question did not raise a substantial question of law, as per the High Court's analysis.

2. Violation of Section 80IB(10)(c):
The Tribunal's order upheld the CIT (Appeals) decision, stating that the respondent-assessee had not sold 3 flats combined into one exceeding 1500 sq. ft. The findings established that the respondent-assessee sold 3 independent flats to a single buyer who later combined them. The buyer confirmed this and clarified that the assessee had no involvement in the combination process. As there was a concurrent finding of fact, the High Court determined that this question did not give rise to any substantial question of law and hence was not entertained.

In conclusion, the High Court disposed of the appeal without costs, as both questions raised by the Revenue did not present substantial questions of law based on the established facts and legal precedents.

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