Vishal Constructions v. ITO - Taxpublishers.in

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The Tax Publishers2020 TaxPub(DT) 3967 (Pune-Trib)

INCOME TAX ACT, 1961

Section 80-IB

Since assessee was entitled to claim deduction under section 80-IB(10) when the deduction of earlier years was not disturbed any of authorities and where Revenue could not bring on record there was change in the facts of the present case in the year compared to facts of earlier years in assessee's own case, thereby assessee was entitled to claim deduction under section 80-IB(10) on pro-rata basis by following the rule of consistency.

Deduction under section 80-IB - Principle of consistency - Pro-rata allotment - Computation of

Assessee was engaged in the business of Builder and Developer and carried out a housing project. The said housing project was on plot area of 1.55 hector. According to AO, the assessee fulfilled all conditions, except condition of provisions of section 80-IB(10)(d) and held the built-up area of shops and commercial establishment was exceeded by 5,000 square feet. AO confronted the same with assessee. He contended that amenity building was separate and different from residential housing building. According to AO, though the building was different and separate but it was part and parcel of housing project as per sanctioned plan and thereby, denied deduction under section 80-IB(10) to that extent. Held: Tribunal while placing reliance decision of High Court in case of Paul Brothers [(1995) 216 ITR 548 (Bom) : 1995 TaxPub(DT) 0140 (Bom-HC)] wherein it was held that assessee was entitled to claim deduction under section 80-IB(10) when the deduction of earlier years was not disturbed any of authorities. Revenue could not bring on record there was change in the facts of the present case in the year compared to the facts of earlier years in assessee's own case, thereby assessee was entitled to claim deduction under section 80-IB(10) on pro-rata basis by following the rule of consistency.

Followed:CIT v. Western Outdoor Interactive Pvt. Ltd. 2012 TaxPub(DT) 3202 (Bom-HC) Direct Information (P.) Ltd. v. ITO 2012 TaxPub(DT) 0797 (Bom-HC) CIT v. Paul Brothers (1995) 216 ITR 548 (Bom) : 1995 TaxPub(DT) 0140 (Bom-HC) Messung Systems v. Asstt. CIT [ITA Nos. 1206 to 1210/PN/2013 for assessment years 1992-93 to 1994-95, 1996-97 and 1997-98, Order, dated 30-9-2016]

REFERRED :

FAVOUR : In assessee's favour

A.Y. : 2013-14

IN THE ITAT, PUNE BENCH