Tribunal upholds assessee's appeal, dismisses Revenue's challenges on disallowances & development costs

The Tribunal dismissed the Revenue's appeals for A.Ys 2013-14 and 2014-15, upholding the decisions of the ld. CIT(Appeals) regarding the deletion of disallowances under section 80IB and development cost additions. The Tribunal found the assessee's methods consistent and acceptable, citing previous Tribunal orders in favor of the assessee for A.Ys 2010-11 and 2012-13. The Revenue's challenges to the deletion of disallowances were dismissed based on the Tribunal's analysis of the case.

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Issues:
- Appeal against orders passed by the ld. Commissioner of Income Tax (Appeals) for A.Y. 2013-14 and 2014-15.
- Common issues: Deletion of disallowance under section 80IB and addition of development cost.

Analysis:
1. Appeal for A.Y. 2013-14:
- The issue involved was the deletion of disallowance under section 80IB by the ld. CIT(Appeals). The assessee, a partnership firm engaged in developing housing projects, claimed a deduction under section 80IB for the project "ASHIANA AMARBAGH" in Jodhpur, Rajasthan. The Assessing Officer disallowed the claim citing a pending appeal against a similar decision. However, the ld. CIT(Appeals) deleted the disallowance based on previous Tribunal orders favoring the assessee for A.Ys 2010-11 and 2012-13. The Tribunal upheld the CIT(Appeals) order, dismissing the Revenue's appeal.

2. Ground No. 2 - Development Cost Addition:
- The Revenue challenged the deletion of an addition of excess development cost made by the Assessing Officer. The assessee allocated development costs to different project phases based on completion stages, which the Assessing Officer found unacceptable. The ld. CIT(Appeals) deleted the disallowance, stating that the assessee's method was consistent and acceptable. The Tribunal upheld the CIT(Appeals) order, dismissing the Revenue's appeal for A.Y. 2013-14.

3. Appeal for A.Y. 2014-15:
- The solitary issue was the deletion of disallowance of development cost made by the Assessing Officer. Similar to A.Y. 2013-14, the Tribunal followed the conclusion drawn for the previous year, upholding the CIT(Appeals) order and dismissing the Revenue's appeal for A.Y. 2014-15.

In conclusion, both appeals by the Revenue were dismissed, with the Tribunal upholding the decisions of the ld. CIT(Appeals) regarding the deletion of disallowances under section 80IB and development cost additions for A.Ys 2013-14 and 2014-15. The Tribunal's analysis was based on consistency in the assessee's methods and previous favorable Tribunal orders, leading to the dismissal of the Revenue's appeals.

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