Assessee wins section 80IB(10) deduction for Venus Parkland residential project despite revenue's completion and certification objections

The ITAT Ahmedabad allowed the appeal in favor of the assessee regarding disallowance under section 80IB(10) for residential project Venus Parkland. The revenue authorities had denied the deduction citing non-completion within five years by 31-03-2012, absence of BU certificate from AUDA for 380 units, multiple unit allotments to single persons, and non-maintenance of separate books of account. The CIT(A) followed jurisdictional HC judgment in assessee's own case for AY 2012-13, which was confirmed by SC, and deleted the addition while granting the section 80IB deduction.

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Issues:
Appeal by Revenue against deletion of addition under section 80IB(10) of the Income Tax Act for the assessment year 2018-19.

Analysis:
The appeal was filed by the Revenue challenging the deletion of an addition of Rs. 2,47,27,471 under section 80IB(10) of the Income Tax Act for the assessment year 2018-19. The Assessing Officer disallowed the deduction claimed with respect to the residential project "Venus Parkland" due to various reasons including non-completion of the project within the stipulated time, absence of BU certificate, allotment issues, and failure to maintain separate books of account. However, the Commissioner of Income Tax (Appeals) deleted the addition following precedents set in the assessee's own case for earlier assessment years. The CIT(A) relied on previous decisions where similar disallowances were made by the AO but were subsequently deleted by the appellate authorities and higher courts, including the Hon'ble ITAT and the High Court. The CIT(A) granted the deduction under section 80IB(10) based on the consistency of decisions in the assessee's favor.

In the appellate order, the CIT(A) highlighted that similar issues were addressed in the assessee's case for the assessment year 2012-13 and the deduction under section 80IB(10) was allowed by the CIT(A) Ahmedabad. The decision was based on the facts and submissions provided by the appellant, emphasizing the similarity of circumstances between the current assessment year and the preceding year. The Tribunal upheld the order of the Commissioner (Appeal) and ruled in favor of the assessee, granting the deduction under section 80IB(10) for the project "Venus Parkland."

Furthermore, the judgment of the Jurisdictional High Court of Gujarat in the appellant's case for the assessment year 2012-13 supported the eligibility of the appellant to claim the deduction under section 80IB. The High Court dismissed the appeal of the Revenue, affirming the decision in favor of the assessee. Additionally, the Supreme Court dismissed the Special Leave Petition (SLP) filed by the Revenue against the High Court's decision, further solidifying the allowance of the deduction under section 80IB(10) for the appellant. The consistent rulings of the courts in favor of the assessee based on the specific circumstances of the case led to the deletion of the disallowance made by the Assessing Officer.

In conclusion, the Tribunal upheld the decision of the CIT(A) to delete the addition under section 80IB(10) for the assessment year 2018-19, following the precedents set in the appellant's own case for earlier assessment years and the judgments of the Jurisdictional High Court and the Supreme Court. The Revenue's appeal was deemed devoid of merits and dismissed accordingly.

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