Appeal Dismissed: ITAT Order on Section 80 IB Deductions Upheld, Supporting Pro Rata Approach for Compliant Units.

The HC dismissed the Revenue's appeal against the ITAT order for AY 2012-2013, which reduced disallowance under Section 80 IB. The Court upheld the CIT(A)'s interpretation allowing 'pro rata' deductions for compliant units, consistent with a prior decision. It found no substantial question of law, affirming the ITAT's ruling.

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Issues:
1. Appeal against ITAT order reducing disallowance under Section 80 IB.
2. Interpretation of Section 80 IB for deduction eligibility.
3. Application of 'pro rata' basis for deduction calculation.
4. Comparison with earlier AY decision and similar cases.

Analysis:
1. The High Court heard an appeal (ITA No. 711/2019) by the Revenue challenging the ITAT order for the Assessment Year 2012-2013. The ITAT had upheld the Commissioner of Income Tax (Appeal) order, reducing the disallowance under Section 80 IB. The Revenue contested this decision.

2. The dispute revolved around the interpretation of Section 80 IB of the Income Tax Act. The Revenue argued that the assessee was not eligible for deduction under this section due to certain residential units exceeding the specified built-up area. However, the CIT(A) allowed the claim based on a 'pro rata' basis, following a previous decision upheld by the Delhi High Court.

3. The Court examined the case and noted that the provision under Section 80 IB could be construed in a manner beneficial to the assessee by allowing deduction on a 'pro rata' basis for compliant residential units. Referring to a previous decision for the assessment year 2009-2010, the Court directed the assessing officer to allow the claim on a 'pro rata' basis, as per the Delhi High Court's ruling in earlier years.

4. The Court also mentioned that the factual position in the present assessment year was not significantly different from the earlier year's case. Citing a similar view taken in the case of Principal Commissioner of Income Tax vs. Omaxe Build Home Private Limited, the Court concluded that no substantial question of law arose in the present appeal and dismissed the Revenue's challenge against the ITAT order.

This detailed analysis provides a comprehensive overview of the judgment, addressing each issue involved in the legal dispute and the Court's reasoning behind the decision.

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