TaxTMI 
TaxTMI 
2015 (6) TMI 408
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.... of appeal raised by the assessee as well as the revenue relate to the same issue, these appeals are heard and disposed of by this common and consolidated order for the sake of convenience. 2. Brief facts of the case as emanating from the assessment year 2010-11 are that the assessee is a firm which is engaged in the business of building and developing of properties. A search and seizure operation was conducted at M/s.Mandavi Promoters and Developers on 04/02/2011 during the course of which various documents belonging to the assessee were found and seized. Pursuant to the same, notice u/s 153C of the Income-tax Act, 1961 [hereinafter referred to as 'the Act' for short] was issued for the assessment year 2010-11 and during the ass....
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....of 100% deduction u/s 80- IB(10), the assessee is in appeal before us, while against the direction of the CIT(A) to make proportionate disallowance, the revenue is in appeal before us. 4. The learned counsel for the assessee, Shri Narendra Sharma, while reiterating the contentions made by the assessee before the authorities below, has drawn our attention to the table drawn at pages 5 to 7 of the assessment order to demonstrate that the flats were booked during the financial year 2007-08 and 2008-09 and that flat Nos.901 & 902 in Block A, 801 & 804 in Block B, 603 & 604 in Block C, were combined before the execution of the sale deeds, but flat Nos.904 & 905, 804 & 805 in Block A, were separate residential units both in the sale deeds as w....
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....fter insertion of clauses (e) and (f) to sec.80IB(10 of the Act in the statute book. Therefore, according to him, the provisions of clauses (e) and (f) cannot be made applicable to the assessee. He also placed reliance upon the judgment of the Hon'ble Karnataka High Court in the case of CIT vs. Anriya Project Management Services P.Ltd. reported in 353 ITR 12 in support of his contention that clauses (e) and (f) are prospective in nature. Without prejudice to his claim that the assessee is entitled to 100% deduction of its profits and gains, the learned counsel for the assessee placed reliance upon the decisions of the co-ordinate benches of this Tribunal in the case of (i) M/s.SJR Builders vs. ACIT in ITA No.1192/Bang/2008 dated 21/08/2009 ....
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....s is evident from the remarks column of the table. The flats 904 & 905 and 804 & 805 in block A have been alleged joined to suit purchasers. Thus, in respect of 10 flats, there is clear violation of 80-IB(10)(c) by the assessee itself. Further, the other objection of the AO is that there is a violation of not only clause (c) to sec. 80-IB(10) of the Act but also of clauses (e) and (f). As per clauses (e) and (f) of sec. 80-IB(10) not more than one residential unit in the housing project shall be allotted to any person not being an individual and where a person is an individual, no other residential unit in such housing project is allotted to the spouse or minor children of such individual, HUF in which such individual is the karta or any pe....
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....herefore, we are of the opinion that the provisions of sec. 80-IB(10)(e) and (f) are not applicable to all the above transactions of the assessee but are applicable to the allotment and bookings done after 1/4/2010. 7. As regards the assessee's claim that it is entitled to 100% deduction u/s 80-IB(10), we find that the issue is now settled by the decision of the Special Bench of the Tribunal in the case of Brahma Associates vs. Joint CIT reported in (2009) 119 ITD 255 wherein it has been held that the assessee shall be eligible for deduction u/s 80-IB(10) insofar as there is compliance with the conditions of sec.80-IB(10) of the Act. Therefore, we confirm the finding of the CIT(A) that proportionate disallowance is to be made in respect ....
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....assessee is also entitled to claim the same as deduction u/s 80-IB of the Act. The learned Departmental Representative, on the other hand, relied upon the provisions of sec.80A(5) of the Act. 11. Having regard to the rival contentions and the material on record, we find that sub-sec.(5) of sec.80A prohibits the allowability of any claim u/s 10A, 10AA or 10B or sec.10BA C or under chapter C of the Act unless and until the assessee had made such a claim in its return of income. In the case before us there is no dispute that the assessee had made a claim of deduction 80-IB(10) and the question is only about quantification of the deduction and not the deduction itself. In such circumstances, we are of the opinion that the assessee is elig....