Pro-rata deduction under section 80IB(10) cannot be denied in a later year without any change in facts.

Deduction under section 80IB(10) on a pro-rata basis was examined in light of consistent acceptance in earlier years on identical facts. The commentary states that where the Revenue had accepted the claim in prior assessments, including under section 143(3), and the housing project facts remained unchanged, the deduction should not be denied in a later year absent any material change in fact or law. The operative result recorded is that the disallowance was set aside and the assessee's pro-rata deduction was allowed for the year under consideration.

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Issues: Whether the assessee was entitled to deduction under section 80IB(10) of the Income-tax Act, 1961 on a pro-rata basis for the year under consideration when the same basis had been accepted in earlier years and there was no change in facts.

Analysis: The assessee had consistently claimed deduction on a pro-rata basis from the initial assessment year, and the record showed that the Revenue had ed the claim in earlier years, including by assessments under section 143(3) of the Income-tax Act, 1961. The facts relevant to the housing project remained unchanged, and no reason was brought on record to justify a different view in the year under appeal. In such circumstances, the settled principle that a benefit accepted in earlier years should not be denied in a subsequent year in the absence of a change in facts applied.

Conclusion: The assessee was entitled to deduction under section 80IB(10) of the Income-tax Act, 1961 on a pro-rata basis for the year under consideration.

Final Conclusion: The disallowance made by the lower authorities was set aside, the additional ground was allowed, and the appeal succeeded.

Ratio Decidendi: Where a deduction has been consistently allowed in earlier years on an identical factual basis, it cannot be withdrawn in a later year unless a material change in facts or law is shown.

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