2022 (12) TMI 1097 - HC - Income Tax

Petition for Mandamus to Extend Tax Deductions for Construction Projects Dismissed; Insufficient Pleadings Noted.

The HC dismissed the petition seeking a writ of Mandamus to extend deductions under section 80-IBA of the Income Tax Act, 1961, and the completion period ... Deductions u/s 80-IBA - writ of Mandamus to direct the Respondent to extend the time period for completion of construction projects from five years to seven year under section 80-IBA(2) (b) - HELD THAT:- The Petitioner’s claim to be discriminated against, on the basis that its members are similarly situated to persons covered under the provisions of section 80-IAC of the Act. In order to prove the element of discrimination, the Petitioner would be required to plead specific facts to demonstrate that its members as a class and those covered by the provisions of section 80- IAC of the Act are similarly situated The Petitioner would be required to make out a case for the issuance of a writ of Mandamus in exercise of powers vested in this Court under Article 226 of the Constitution of India for directing the Respondent, or for that matter, the legislature to legislate and extend the timelines in the provisions of section 80-IBA(2)(b) of the Act, 1961 as claimed in the petition. We find the present petition is grossly lacking in sufficient pleadings as would be required from making out a case of discrimination as claimed by the Petitioner. The petition lacks all material particulars required to be stated in the pleadings, to draw some parity or similarity between members of the Petitioner and persons stated to be covered by the provisions of section 80-IAC of the Act. Further applying the ratio laid down in Supreme Court Employees Welfare [1989 (7) TMI 333 - SUPREME COURT] this Court would not exercise its jurisdiction under Article 226 of the Constitution of India, to issue a writ of Mandamus to the Respondent and much less to the legislature, directing the legislation in the nature sought by the Petitioner in the reliefs claimed in the petition. We are of the opinion that no writ of Mandamus would lie to direct the legislature and accordingly, we dismiss the petition. Issues:1. Extension of date for availing deductions under section 80-IBA of the Income Tax Act, 19612. Extension of time period for completion of construction projects under section 90-IBA(2) (b) of the Act3. Allegation of discrimination against Real Estate Developers4. Fundamental rights violation under Article 14 of the Constitution of India5. Jurisdiction of the Court to issue a writ of MandamusExtension of Deductions and Completion Time:The petitioner sought a writ of Mandamus to extend the date for availing deductions under section 80-IBA of the Income Tax Act, 1961, and to extend the time period for completion of construction projects from five years to seven years under section 90-IBA(2) (b) of the Act. The petitioner argued that the Union of India had extended similar timelines in other provisions but failed to do so in the case of section 80-IBA, leading to discrimination against Real Estate Developers.Allegation of Discrimination:The petitioner claimed that the failure to extend timelines under section 80-IBA beyond 31.03.2022, while granting extensions in other provisions, amounted to discrimination. The petitioner argued that this discriminatory treatment violated the fundamental rights of its members, particularly those enshrined in Article 14 of the Constitution of India. The petitioner highlighted the impact of the Covid-19 Pandemic on the real estate industry and cited advisories issued by regulatory authorities for deadline extensions due to force majeure conditions.Legal Analysis and Jurisdiction of the Court:The court analyzed the petitioner's claim of discrimination and the requirement to demonstrate that its members and those covered under section 80-IAC of the Act were similarly situated. The court referred to relevant judgments emphasizing the need for specific, clear, and unambiguous allegations to prove discrimination under Article 14. Additionally, the court discussed the powers of the courts to issue a writ of Mandamus to direct a legislature to enact a particular law, highlighting that no court can compel the legislature to legislate in a specific manner.Court Decision and Conclusion:Based on the analysis, the court found the petition lacking in sufficient pleadings to establish discrimination as claimed by the petitioner. The court concluded that it would not exercise its jurisdiction under Article 226 of the Constitution of India to issue a writ of Mandamus to the Respondent or the legislature for the reliefs sought by the petitioner. Therefore, the court dismissed the petition, stating that no writ of Mandamus would lie to direct the legislature, and no costs were awarded in the matter.This comprehensive summary provides a detailed analysis of the judgment, covering all the issues involved and the court's decision on each aspect of the case.