INCOME TAX ACT, 1961

Section 80-IB(10)

Deduction under section 80IB(10) - Deduction on pro-rata basis in respect of shops and commercial buildings - Allowability -

Assessee claimed deduction under section 80-IB(10). AO held that assessee had violated the provisions of section 80-IB(10) as built up area of shops and commercial establishments exceeded 5,000 sq. ft. For such violation the AO denied the deduction claimed by assessee. Assessee sought pro-rata deduction in respect of shops and commercial establishments. Held: Tribunal in assessee's own case for assessment year 2013-14 [[ITA No.831/PUN/2017, dt. 16-9-2020]] observed that revenue granting the deduction consistently on pro-rata basis from assessment year 2009-10 onwards up to 2012-13 but, however, without there being any change in the facts relating to deduction under section 80-IB(10), revenue denied the said deduction for assessment year 2013-14. This Tribunal on the rule of consistency by placing reliance in the case of CIT Vs. Paul Brothers [(1995) 216 ITR 548 (Bom) : 1995 TaxPub(DT) 0140 (Bom-HC)] held that assessee was entitled to claim pro-rata deduction in respect of shops and commercial establishments.

Relied: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) Vishal Constructions v. ITO [ITA No.831/PUN/2017, dt. 16-9-2020] Messung Systems v. Asstt. CIT [ITA Nos.1206 to 1210/PN/2013, dt. 30-9-2016]