TaxTMI 
TaxTMI 
TaxTMI 
2022 (9) TMI 1366
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....icable to the flats booked prior to 01.04.2010, even if the sale of the said flats was made after 01.04.2010 (date of insertion of clause e & f)? 3. The appellant craves the right to amend alter or add to any of the grounds of appeal given above." 3. The brief facts of the case are that during the course of assessment proceedings the Assessing Officer observed that as per l0CCB report the housing project was completed on 30.06.2010 but in the profit & loss account work-in-progress was appearing and thus wrong information was submitted by the assessee with regard to completion of project. The Assessing Officer further observed that the assessee has violated the provisions of section 80IB(10) and thus is not eligible for deduction u/s 80IB. The Assessing Officer disallowed the claim of Rs.1,54,98,395/- made u/s 80IB of the I.T. Act. On the issue of disallowance of deduction u/s 80IB of I.T. Act, the CIT(A) has allowed the appeal of the assessee holding that the issue is covered by the decision of appellate authority in the assessee's own case for A.Y. 2011-12 & 2012-13 wherein it was held that provisions of clause (e) & (f) are applicable prospectively in respect of flats book....
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.... the Income Tax Act, as above. Issue copy of order, demand notice of the Income Tax Act, 1961 to the assessee. Credit of TDS and prepaid taxes will be allowed after verification. Penalty u/s 271(1)(c) is being initiated separately. 6. Being aggrieved by the AO the assessee carried the matter in appeal before the ld. CIT(A) who has granted the necessary relief to the assessee. Now, the Revenue is in appeal against the said findings of the ld CIT(A). 7. Now, the Revenue is in appeal against the said findings of the ld CIT(A) which is contained at para 18 & 19 of his order which is reproduced as under:- "18. In view of the above judicial pronouncements, I agree that the addition of Rs. 14,47,70,242/- on account of sales appearing in ITS Data, addition u/s 43CA of Rs. 2,09,37,049/-and disallowance of Rs. 1,33,746/- u/s 14A are eligible for deduction u/s 80IB(10). It is pertinent to mention that although this ground of appeal is allowed for academic purposes only since the addition of Rs.14,47,70,242/- on account of sales appearing in ITS Data, addition u/s 43CA of Rs. 2,09,37,049/-and disallowance of Rs. 1,33,746/- has already been deleted and therefore the question of any further ....
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....CIT(A). c) The summarized history in terms of deduction eligibility u/s 80IB(10) is attached as Annexure. Department Appeal :- Ground No. 1 & Ground No. 2 Assessing Officer Ld. AO disallowed the claim u/s 80IB for the following two reasons: a) The Project claimed to have been completed has not yet been completed, as the construction expenses continue to appear in the audited financial statements [AO page 2 para (ii)(a)]. b) The assessee company violated the provisions of section 80IB (10) (e) & (f) [AO page 3 para (ii)(b)]. CIT(A): Ld. CIT(A), after analyzing the submission of the assessee company and evaluating the remand report of the Id. AO thereon and also observing that the issues were squarely covered by the order of CIT(A) in earlier years, allowed the appeal. Submission 1. A.Y. 2011-12 1.1 The dispute of effective date of applicability of clauses (e) & (f) of section 80IB (10), in assessee's own case, came up for consideration before Id. CIT(A) in A.Y. 2011-12. 1.2 Ld. CIT(A), for the A.Y. 2011-12, after elaborately examining the issue of effective date of applicability of section 80IB (10) (e) & (f) held that the amendments, introducing clauses ....
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....ras 2. Pr. CIT v Sahara States Gorakhpur (2019) 418 ITR 168-80IB(10)(d) prospective (CLC REF. 22-28) Allahabad ITAT Sr. No. Case law Name of High Court 1. DCIT v RDB Realty & Infrastructure Ltd. ITA No. 575/Kol/2016 (CLC REF. 29-32) AY 2011-12 order dated 20.07.2018-80IB(10)(f) prospective Kolkata 3. During the year under appeal, the total sales consisted only of the flats of Phase 1.In all 12 flats were sold aggregating to Rs. 2,96,71,000. None of the flats sold were violative of the provisions of 80IB (10) (e) & (f). 4. Another issue raised by Id. AO was regarding Phase I not yet being complete. It is submitted that whatever construction expenses are appearing in the profit & loss statement are pertaining to Phase II only. Phase I having been completed on 01.10.2010. 5. The condition of completion of eligible Phase I was examined in preceding two assessment years i.e. A.Y. 2010-11 & A.Y. 2011-12. Deduction in these two assessment years stood allowed by the Id. AOs vide orders u/s 143(3) (PB 1-3 and PB 4-7). 6. Once the eligibility conditions are examined in the first year of eligibility, when the benefit is allowed over a period, the same cannot be negate....
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....ere sub clause (e) & (f) has made amendments 80IB(10) of the Act which mentioned that not more than one residential unit in the housing project could be allotted to an individual and if one residential unit is allotted to an individual, no more residential unit could be allotted to its spouse, minor children and HUF. The ld. Sr. DR fully relied and uphold the orders passed during the assessment proceedings by the Assessing Officer. He is legally and effectively and correct and the disallowance is made according to the amendments and the ld. DR submitted that the decision of ld. CIT(A) is not acceptable and the issue of allowance of deduction u/s 80IB is not with the facts and legally correct. Further ld. Sr. DR submitted that the ld. CIT(A) relied on the decision of the issues where the assessee's own case in the A.Ys 2011-12 & 2012-13 wherein it was held that the provisions of sub clause (e) and (f) prospective in respect of flat booked or after on 01.04.2009. The arguments placed by the ld. Sr. DR before us that as per the completion of certificate of project. The project was completed on 30.06.2010. Therefore, any sell made in assessment year 2013-14 cannot be accepted to be mad....
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....r sale of multiple units to the same individual in alleged violation of the condition contained in section 80IB (10) (e)& (f) introduced by the Finance Act 2009 w.e.f 01.04.2010. Observing the facts and circumstances of the case that the legal issue of clause (e) & (f) is prospective in nature. Taking into consideration, the A.Y 2011-12, applicability of section 80IB(10) and clause (e) & (f) held that the amendment introduced clauses (e) & (f) and u/s 80IB(10) were prospective in nature. 12. The ld. CIT(A) has placed judicial precedence concerning to different two places introduced from time to time in section 80IB(10), wherein the computing the tax for the A.Y 2013-14 did not consider the met credit available to the assessee and that in any addition is sustained and in respect of which further deduction u/s 80IB(10) of the Act is not allowed and based on the identical issue has already been examined by the ld. CIT(A) for the A.Y 2012-13 wherein the issue has also been decided in favour of the assessee. Considering the legal issues, the ld. AR for the assessee has placed reliance on various Supreme Court, High Courts and Co-ordinate Benches which specifically held that clause (e) ....