TaxTMI 
TaxTMI 
2016 (10) TMI 360
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....on of housing project. For the assessment year 2005-06, the petitioner had filed the return of income on 31.10.2005 declaring 'Nil' income after claiming deduction of Rs. 86.99 lakhs (rounded off) under section 80IB(10) of the Income Tax Act, 1961 ('the Act' for short). Such return was taken in the scrutiny by the Assessing Officer, during which, he raised multiple queries including the following. "7. With reference to deduction u/s.80 IB(10) please give the following details: (1) Copy of approval of plan of the housing project approved by the local authorities stating date of approval, date of commencement and completion of the housing project. (2) Please also give the evidence of plot of land and builtup area of th....
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....d the impugned notice, which as can be seen, was done within four years from the end of relevant assessment year. In order to do so, the Assessing Officer had recorded following reasons: "The assessee has filed the return of income for A.Y. 2005-2006 on 31/10/2005 showing total income of Rs. Nil after claiming deduction of Rs. 86,90,981/- u/ s. 80IB(10) of the Income-tax Act, 1961. In this case assessment for A.Y. 2006-2007 has been finalized u/s. 143(3) of the I.T. Act, after disallowing assessee's claim of deduction u/s. 80IB( 10) of the I. T. Act, 1961 on the ground that the assessee is not the constructive owner of the land and the permission from the AUDA is also not obtained by the assessee. On a perusal of the development agree....
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....titioner filed this petition. 7. In background of such facts, counsel for the petitioner submitted that the Assessing Officer having scrutinized the petitioner's claim of deduction under section 80IB(10) of the Act in the original assessment, cannot reopen the assessment on the same ground. He further submitted that the issue of the deduction under section 80IB(10) of the Act has been sufficiently made clear by this Court in case of Commissioner of Income-tax v. Radhe Developers, reported in [2012] 341 ITR 403 (Guj). In case of this very assessee, the Tribunal had in the subsequent assessment year held that the Revenue was not justified in rejecting the claim of deduction. Such judgment of the Tribunal is confirmed by the High Court wh....
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....text, he referred to an elaborate order of assessment passed in case of the assessee for the subsequent assessment years. The Assessing Officer sought to distinguish the facts of the case from those of M/s. Shakti Corporation, decided by the Tribunal. 11. In short, therefore, without so saying, the Assessing Officer was hinting at the assessee not being a developer of a housing project and therefore, income not being eligible for deduction under section 80IB(10) of the Act. 12. For multiple reasons on such grounds, the reopening would not be permissible. Firstly, as noted, in the original scrutiny assessment, deduction under section 80IB(10) of the Act was the main claim of the assessee which came up for scrutiny. The Assessing Officer ra....