CIT v. A. Jagadeeswari - Taxpublishers.in

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The Tax Publishers2020 TaxPub(DT) 1582 (Mad-HC) : (2020) 423 ITR 0008 : (2020) 274 TAXMAN 0168

INCOME TAX ACT, 1961

Section 80-IB

Where assessee had obtained approvals of plan for proposed projects and also planned the entire project and it was done as a composite project at proposed site, revenue could not deny deduction under section 80IB on allegation that assessee was not owner of property and it executed a contract with purchasers of undivided share in land to construct the building.

Deduction under section 80-IB - Allowability - Allegation that assessee was not owner of property and it executed a contract with purchasers of undivided share in land to construct the building - Assessee had obtained approvals of plan for proposed projects

Assessee was denied deduction under section 80IB on allegation that assessee was not owner of property and had executed a contract with purchasers of undivided share in land to construct the building. Tribunal held that completion certificate was not necessary for claiming the deduction.Held: Assessee had obtained approvals of plan for proposed projects and also planned the entire project regarding number of floors, number of apartments in each floor, cost of each apartment based on the square foot area of the apartment and it was done as a composite project at the proposed site. Further, in assessee's own case, on earlier occasions in TCA.Nos.581 & 582/2011 and 314 and 315/2012 vide common judgment dated 1-11-2012, was allowed, there were no substantial questions of law,

Followed:CIT v. Jagadeeswari [Tax Case (Appeal) No. 257 of 2012, dt. 12-11-2014]

REFERRED :

FAVOUR : In assessee's favour.

A.Y. :

IN THE MADRAS HIGH COURT

M. SATHYANARAYANAN & ABDUL QUDDHOSE, JJ.

CIT v. A. Jagadeeswari

TCA No. 377 of 2018

2 March, 2020

Appellant by: T. Ravikumar

JUDGMENT

M. Sathyanarayanan, J.

The Revenue is the appellant herein. Though the respondent / Assessee has been served and her name appears in the Cause List, there is no representation on her behalf.

2. The respondent/Assessee filed the Return of Income Tax for the assessment year 2007-08 on 29-9-2008, admitting the income of Rs. 28,69,400 after claiming deduction under Section 80IB[10] of the Income Tax Act, 1961, as amended from time to time, a sum of Rs. 4,99,11,555 and it was processed on 27-2-2010. The assessing officer, in the course of completing assessment for the assessment year 2009-10, noticed the fact that the Assessee did obtain plan for construction of the entire plot of measuring slightly over one acre, where blocks ranging from A to L were constructed. It was also noticed that each block of flat was constructed on a plot measuring less than one acre and therefore, the assessing officer held that the project was not an unified project in an extent of one acre and treated each approval as a separate project extending in an area less than one acre and therefore, not allowed the claim of deduction under the said Section. The assessing officer has also placed reliance upon the Board of Direct Taxes Instructions No.4 of 2009 dated 20-6-2009 and that apart, the deduction allowed in respect of earlier orders has to be withdrawn and therefore, a notice under Section 148 of the Income Tax Act, 1961, was issued on 1-3-2013 for the assessment year 2008-09.