| The Tax Publishers2020 TaxPub(DT) 3598 (Karn-HC) INCOME TAX ACT, 1961
Section 80-IB(10)
Where there were deviations to sanctioned plan of the local authority by assessee firm in carrying out the housing project but deviation in construction was with reference to modified building plan, which was well within permissible limit of regularization with levy of compounding fee, which was accordingly paid by assessee, and project was approved by local authority, thus, assessee complied with conditions mentioned in section 80-IB(10)(a).
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Deduction under section 80-IB(10) - Eligibility - Deviations in sanctioned housing project - Approval by local authority received after payment of compounding fee by assessee
Revenue challenged order of appellate authorities holding that assessee firm was eligible for deduction under section 80-IB(10). Revenue contended that there was large scale violations and deviations to sanctioned plan of the local authority by assessee firm in carrying out the ''Housing Project'.Held: Tribunal allowed the deduction holding that local authorities inspected building for issue of occupancy certificate and it was observed that there was a deviation in construction with reference to the modified building plan, which was well within the permissible limit of regularization with levy of compounding fee, which was accordingly paid by assessee. Findings of fact are based on meticulous appreciation of evidence on record. From findings recorded by CIT(A) as well as Tribunal, it was evident that project undertaken by assessee was approved by local authority and therefore, it complied with conditions mentioned in section 80-IB(10)(a).
REFERRED : Ramnath & Co. v. The CIT (2020) 116 Taxmann.com 885 (SC) : 2020 TaxPub(DT) 2447 (SC), Commr. of Customs (Import), Mumbai v. M/s. Dilip Kumar and Company & Ors. 2018 TaxPub(EX) 737 (SC), Dy. CIT, Circle 11 (1), Bangalore v. Ace Multi Axes Systems Ltd. 2017 SC 5660 : (2018) 400 ITR 141 (SC) : 2017 TaxPub(DT) 5071 (SC), CIT-19, Mumbai v. Sarkar Builders (2010) 57 taxmann.com 313 (SC), State of Bihar and others v. Kalyanpur Cements Ltd. (2010) 3 SCC 274 (SC) and State of Jharkhand & Ors. v. Ambay Cements & Anr. (2005) 1 SCC 368 : 2004 TaxPub(EX) 4155, (SC). Eagle Flask Industries Limited v. Commr. of C. Ex. (2004) 7 SCC 377 : 2004 TaxPub(EX) 1927 (SC) CIT & Asst. CIT v. M/s. Ittina Properties (P) Ltd. (2014) 49 taxmann.com 201 (Karnataka) Manasa Housing Co-operative Society Ltd. v. Marikellaiah AIR 2006 Kar. 273
FAVOUR : In assessee's favour.
A.Y. : 2007-08
IN THE KARNATAKA HIGH COURT
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