The Ahmedabad Bench of Income Tax Appellate Tribunal(ITAT)upheld the decision of the Commissioner of Income Tax(Appeals)[CIT(A)] confirming the deletion of Rs.2.47 Crore disallowance under Section 80IB(10) of the Income Tax Act,1961.
The Revenue-appellant, challenged the decision of the CIT(A) who had deleted an addition of Rs.2,47,27,471 made under Section 80IB(10) of the Act in the case of Venus Infrastructure and Developers Pvt. Ltd., respondent-assessee.
Law and Procedure for Filing of Appeals
The Assessing Officer(AO)disallowed the Rs.2,47,27,471 deduction claimed under Section 80IB(10) for the “Venus Parkland” project. The disallowance was made on the grounds of non-completion of the project within five years, absence of a Building Use(BU) certificate for the 380 units, allotment of multiple units to a single person, and failure to maintain separate books of account for the project as required under the section.
The CIT(A) followed precedents from earlier assessment years, specifically AY 2012-13 and AY 2017-18, where similar disallowances had been deleted in the assessee’s favor. In the earlier years, the Revenue had contested the issue, but both the CIT(A) and the ITAT ruled in favor of the assessee. Notably, the Gujarat High Court had dismissed the Revenue’s appeal for AY 2012-13, which was later upheld by the Supreme Court after the Revenue’s Special Leave Petition (SLP) was dismissed.
Law and Procedure for Filing of Appeals
The tribunal, reviewing the case, found that the issues raised by the Revenue had already been addressed in the assessee’s favor by higher judicial authorities.It held that the CIT(A) had correctly followed the judicial precedents in allowing the deduction under Section 80IB(10) of the Act.
The two member bench comprising T.R.Senthil Kumar(Judicial Member) and Makarand V.Mahadeokar(Accountant Member) dismissed the Revenue’s appeal, agreeing with the CIT(A)’s order and confirming the deletion of the disallowance of Rs.2,47,27,471.
In short, the ITAT upheld the decision of the CIT(A) and dismissed the Revenue’s appeal as lacking merit.
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