The Tax Publishers2021 TaxPub(DT) 0630 (Karn-HC)

INCOME TAX ACT, 1961

Section 80-IB(10)

On close scrutiny of the judgment rendered by this Court in Brigade Enterprises Ltd. [ 2020 TaxPub(DT) 3885 (Karn-HC)] it was evident that question of law involved in this appeal was no longer res integra and therefore, Tribunal was justified in directing AO to allow proportionate deduction under section 80-IB(10).

Deduction under section 80-IB(1) - Computation - Proportionate deduction -

Assessee was engaged in the business of real estate and construction of apartments. Assessee claimed deduction of a sum under Section 80-IB(10). AO, on examination of the eligibility criteria as is stipulated under section 80-IB(10) concluded that assessee did not fulfill the condition 'C' laid down in the said provision and disallowed the deduction. Tribunal, however, confirmed the order of CIT (A) whereby assessee was granted the benefit of proportionate deduction under section 80-IB(10). Held: As decided in own case [ITA No.84/2010 : 2020 TaxPub(DT) 2141 (Karn-HC)]. on close scrutiny of the judgment rendered by this Court in Brigade Enterprises Ltd. [ 2020 TaxPub(DT) 3885 (Karn-HC)] it was evident that question of law involved in this appeal was no longer res integra. Therefore, Tribunal was justified in directing AO to allow proportionate deduction under section 80IB(10).

Followed:CIT v. Brigade Enterprises Ltd. 2020 TaxPub(DT) 3885 (Karn-HC) and CIT v. Prestige Estate Projects Pvt. Ltd. ITA No.84/2010 : 2020 TaxPub(DT) 2141 (Karn-HC). Relied:CIT v. SJR Builders [ITA No.32/2010 dated 19-3-2012] and CIT v. SN Builders & Developers [I.T.A. No. 393 of 2014, dt. 7-1-2021].

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2013-14



IN THE KARNATAKA HIGH COURT

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