The Tax Publishers2020 TaxPub(DT) 3289 (Mum-Trib) INCOME TAX ACT, 1961
Section 80-IB(10)
Where assessee had preferred appeals before the Tribunal against the disallowance of deduction claimed under section 80-IB(10) in assessment years 2010-11 and 2011-12 and Tribunal held that that conditions of section 80-IB(10) have been fulfilled in all respects, allowed assessee's claim of deduction and once Tribunal had recorded a factual finding that housing project was completed within stipulated time-frame and such finding of fact was also upheld by High Court in assessee's own case, there was no scope for AO to deny assessee's claim of deduction under section 80-IB(10).
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Deduction under section 80-IB(10) - Construction not completed within a period envisaged under the statutory provision - Allowability -
Assessee claimed deduction under section 80-IB(10). AO while examining assessee's claim of deduction under section 80-IB(10) found that similar deduction claimed by the assessee in the assessment years 2010-11, 2011-12, 2012-13 and 2013-14 have been disallowed by AO alleging violation of conditions mentioned in section 80-IB(10). In consonance with the view taken in preceding assessment years, AO disallowed assessee's claim of deduction in present assessment year as well. Held: AO denied assessee's claim of deduction simply on the reasoning that similar deduction claimed by assessee in assessment years 2010-11 to 2013-14 was denied. It was further evident, against the disallowance of deduction claimed under section 80-IB(10) in assessment years 2010-11 and 2011-12, assessee had preferred appeals before the Tribunal. Tribunal having found completion certificate to be in order and being convinced with the fact that conditions of section 80-IB(10) have been fulfilled in all respect, allowed assessee's claim of deduction under the said provision while disposing of the appeals being ITA No. 1531-1532/Mum./2014, vide Order, dated 3-11-2016. The said decision of the Tribunal was brought to the notice of AO in the course of the assessment proceedings. However, AO declined to follow the decision of the Tribunal on the flimsy grounds that he has not received a copy of the said order officially. Thus, once Tribunal, being the last fact finding authority, had recorded a factual finding that housing project was completed within stipulated time frame and such finding of fact was also upheld by High Court in assessee's own case, there was no scope for AO to deny assessee's claim of deduction under section 80-IB(10).
Followed:Pr. CIT v. Rattanchand Rikhabdas Jain Chemical Works (2020) 117 taxmann.com 709 (Bom.) : 2020 TaxPub(DT) 1620 (Bom-HC) Pr. CIT v. Govardhan G. Vanani [Income Tax Appeal No. 421 of 2017 Along With Income Tax Appeal Nos. 1089/2017, 1111/2017, 1243/2017, 1331/2017 and 1334/2017, dt. 3-9-2019] Asstt. CIT v. M/s. Rattanchand Rikhabdas Jain Chemicals Works [ITA No.3251/Mum/2017, dt. 5-12-2018] ACIT v. M/s. Rattanchand Rikhabdas Jain Chemical Works [ITA No. 3252/MUM/2017, dt. 24-10-2018] Rattanchand Rikhabdas Jain v. ITO [ITA No. 1531/Mum/2014, ITA No. 1532/Mum/2014, dt. 3-11-2016]
REFERRED :
FAVOUR : In assessee's favour
A.Y. : 2014-15
IN THE ITAT, MUMBAI BENCH
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