TaxTMI 
TaxTMI 
2012 (5) TMI 631
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....essee is a company which is in the business of construction and development of residential and commercial buildings. It has filed its return of income on 17.11.2006 declaring income of Rs. 57,29,597/-, after claiming deduction of Rs. 4,55,22,203/- under section 80IB(10) of the income tax Act, 1961 (the Act). There was a survey action under section 133A on 23.2.2007 on the business premises of the assessee. During the course of the survey proceedings a statement was recorded from Shri Ashok Kumar Goyal a director of the company under section 131. In the statement Shri Goyal admitted to additional income of Rs. 4.60 lacs which included withdrawal of claim made under section 80IB of Rs. 4,55,22,203/-. The assessee contended that during the cou....
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....rector of the company. He held that the assessee furnished inaccurate particulars leading to concealment of income within the meaning of section 271(1)(c). He confirmed the penalty. 3. On appeal the first appellate authority cancelled the penalty by holding that the assessee has withdrawn the claim to avoid protracted litigation and to buy peace of mind. It was further held that the issue is debatable issue and merely making the claim does not tantamount to furnishing of inaccurate particulars. He further held that the explanation given by the assessee is bonafide and revenue has accepted the revised return without any enquiry. Aggrieved the revenue is in appeal before us. 4. The ld. DR submitted that but for the survey the facts that the....
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.... or the building should be located in a plot of land which is more than one acre. Due to this ambiguity in law the assessee chose to withdraw the claim and paid taxes. He vehemently contended that subsequent judicial decisions including that of the Hon'ble Bombay High Court on this legal point were in favour of the assessee and that had the assessee not withdrawn the claim under section 80IB(10), then the revenue could not have denied the same. He submitted that the assessee was coerced to agree for the withdrawal, issue post dated cheques and file revised return within a period of one week from the date of survey. He relied heavily on the order of CIT(A) and submitted that the first appellate authority rightly relied on the decision of....
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....authority subject to the conditions set out in the first approval granted on 12.5.1993 for construction of A and B building, construction of 'E' building is an "extension" of the earlier housing project for which approval was granted prior to 1.10.1998 and, therefore, benefit of section 80IB(10) cannot be granted?, (iii) whether the housing project must be on a vacant plot of land which has minimum area of one acre and it there are multiple buildings and the proportionate area for each building is less than one acre, section 80-IB(10) can be denied?, whether the merger of two flats into one so as to exceed the maximum size of 1000 sq.ft. violates the condition set out in section 80IB(10)? Held by the High Court: (i) As the expression....