2017 (8) TMI 525

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.... "1. Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) was justified in directing the assessing officer to grant deduction u/sec. 801B(10) on pro-rata basis given the fact that non-fulfilment of a single pre-condition as detailed in clause (c) to Sec. 801B(10), shall dis-entitle the assessee from claiming exemption under section 801B(10) of the Income Tax Act, 1961.?" 2. Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) was justified in ignoring the ratio laid down by the Hon'ble Supreme Court in the case of Padmasundra Rao (Decd.) & Ors Vs State of Tamil Nadu (2002) wherein the Hon'ble Apex Court has held that the Court cannot read anything into a st....

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....in reply to the specific query of the AO the assessee submitted as under: - (a) Each residential unit of 2BHK in A to D Wing are of less than 1000 sq.ft. area (b) It is not an SRA project. (c) Assessee have claimed 80IB deduction only on building in which flats which are of less than 1000 sq.ft. area and not claimed deduction in respect of 3 BHK flats of D Wing. Various courts including Mumbai ITAT had already taken a view that in the case the residential building consists of flats of more than 1000 sq.ft and less than 1000 sq.ft., the deduction under section 80IB(10) should be allowed to the assessee on proportionate basis. In support of its contention that it is entitled to claim proportionate deduction in re....

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.... up area of the project for all residential units" 5. We have heard the rival contentions. During the course of hearing the learned A.R. submitted that the issue in controversy is covered by the decision of the Hon'ble Madras High Court in the case of Viswas Promoters Ltd. vs. ACIT 29 Taxman 19 wherein the High Court has set aside this issue in favour of the assessee. 6. The learned D.R. relied upon the decision of various Tribunals but when there is a High Court judgement we are bound to follow the judgement of the Hon'ble High Court. Therefore, we are of the view that the issue in controversy is covered by the decision of the Hon'ble Madras High Court which reads as under: - "Asessee is eligible for deduction un....

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....ntitled to have the benefit of deduction in respect of residential units satisfying the requirement under section 80-IB(10) (c). (Para 14] * In the light of the above reasoning, the substantial questions of law is answered in favour of the assessee as to that the assessee is entitled to the claim of deduction in respect of all the blocks forming part of the projects called Agrini and Vajra, but to the extent of each of the blocks satisfying the conditions under section 80-IB(10) the assessee would be entitled to the relief on a proportionate basis. [Para 15] * In the result the appeals are allowed. [Para 16]" Respectfully following the same we dismiss the appeal of the Revenue. 7. The first ground raised by the assessee....

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.... donation was debited in WIP for A.Y. 2008-09. The assessee submitted that when the donation was never debited to Profit & Loss Account and never claimed, therefore it cannot be allowable in A.Y. 2011-12 or 2008-09. The learned D.R. relied upon the order of the Revenue. 11. We have heard the rival contentions. We find that during the course of hearing the learned A.R. submitted the assessee has never claimed donation in its return of income in A.Y. 2011-12 or 2008-09. Therefore, when the assessee did not claim the donation there is no question of addition of Rs. 2,12,000/-. Therefore, we allow the same. Ground No. 1 is allowed. 12. Ground No. 2 is with regard to confirmation of the disallowance made by the AO of interest expenditure a....