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The Tax Publishers Prestige Estates Projects Ltd. v. Dy. CIT [ITA Nos. 845, 850 (Bang) of 2015, dt. 13-5-2016] : 2016 TaxPub(DT) 2453 (Bang-Trib) Claim of disallowance in expense in deductions under section 80IB raised afresh in appeal *Facts:* Assessee in the business of real estate construction and malls had to pay compounding fees to Corporation for regularizing violations in constructions to obtain occupancy certificate. This was rejected by the assessing officer holding it to be penalty for infraction of law and upheld by the Commissioner (Appeals). Aggrieved the assessee went in further appeal which got rejected by ITAT based on earlier decision of own case. Subsequently it was also pleaded that if disallowance was done of the same then the same be considered for allowance under section 80IB as it will enhance the profit. This point was raised afresh before ITAT and not before any of the authorities. Held in favour of the assessee that the point of allowability under section 80IB requires consideration on merits, to that extent is remanded back as this was totally a fresh ground raised only before the ITAT.

The Tax Publishers

Prestige Estates Projects Ltd. v. Dy. CIT [ITA Nos. 845, 850 (Bang) of 2015, dt. 13-5-2016] : 2016 TaxPub(DT) 2453 (Bang-Trib)

Claim of disallowance in expense in deductions under section 80IB raised afresh in appeal

Facts:

Assessee in the business of real estate construction and malls had to pay compounding fees to Corporation for regularizing violations in constructions to obtain occupancy certificate. This was rejected by the assessing officer holding it to be penalty for infraction of law and upheld by the Commissioner (Appeals). Aggrieved the assessee went in further appeal which got rejected by ITAT based on earlier decision of own case. Subsequently it was also pleaded that if disallowance was done of the same then the same be considered for allowance under section 80IB as it will enhance the profit. This point was raised afresh before ITAT and not before any of the authorities.

Held in favour of the assessee that the point of allowability under section 80IB requires consideration on merits, to that extent is remanded back as this was totally a fresh ground raised only before the ITAT.