Viswas Promoters (P.) Ltd. v. Asstt. CIT & Ors.

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The Tax Publishers2013 TaxPub(DT) 0489 (Mad-HC) : (2013) 050 (I) ITCL 0274 : (2013) 255 CTR 0149 : (2013) 214 TAXMAN 0524 : (2013) 081 DTR 0068 INCOME TAX ACT, 1961 --Deduction under section 80-IB--Allowability Flats more than 1,500 sq.ft.--The assessing officer viewed that the deduction under section 80-IB being for the project as a whole and all the residential units in the project must satisfy the conditions therein, namely, built-up area to be less than 1,500 sq.ft. On the admitted facts as to the units having built-up area more than 1,500 sq.ft., assessee was not eligible for deduction for the entire projects. Commissioner (Appeals) relying on the decision of the Tribunal, Kolkata Bench, in the case of Bengal Ambuja Housing Developments Ltd. v. CIT ITA No. 1595/Kol/2005, dt. 24-3-2006 held that the assessee was entitled to deductions under section 80-IB(10)(c) Tribunal disallowed the same. <b.Held: Was not justified as in statute nowhere it was stated that proportionate deduction under section 80-IB(10) should not be allowed, in case certain residential units had built up area in excess of prescribed limit of 1,500 sq.ft. Income Tax Act, 1961, Section 80-IB In the Madras High Court Chitra Venkataraman & K. Ravichandra Baabu, JJ. Viswas Promoters (P.) Ltd. v. Asstt. CIT & Ors. Tax Case (Appeal) Nos. 1014 of 2009, 857 of 2010 & 190 to 192 of 2012; Writ Appeal No. 471 of 2010 A.Ys. 2004-05 to 2008-09 2 November, 2012 Income-tax Act, 1961, ss. 80HHBA, Expln. (a) & 80-IB(10) In favour of: Assessee Assessee by : C.V. Rajan for R. Sivaraman Revenue by : T. R. Senthil Kumar JUDGMENT *Chitra Venkataraman, J.* The assessee is on appeal as against the order of the Tribunal relating to the assessment years 2004-05, 2005-06, 2006-07, 2007-08 and 2008-09 in Tax Case No. 1014 of 2009, Tax Case No. 857 of 2010 and Tax Case Nos. 190, 191 and 192 of 2012 respectively. Although a composite question of law is raised in these tax cases, since the issues relate to the same transaction, the substantial questions of law framed in respect of the assessment year 2004-05 in Tax Case No. 1014 of 2009 extracted herein, fit in with the questions raised in the other cases too and hence, are apposite to other tax cases. The substantial questions of law raised in respect of assessment year 2004-05 read as under : SUBSCRIBE FOR FULL CONTENT

The Tax Publishers2013 TaxPub(DT) 0489 (Mad-HC) : (2013) 050 (I) ITCL 0274 : (2013) 255 CTR 0149 : (2013) 214 TAXMAN 0524 : (2013) 081 DTR 0068

INCOME TAX ACT, 1961

--Deduction under section 80-IB--Allowability Flats more than 1,500 sq.ft.--The assessing officer viewed that the deduction under section 80-IB being for the project as a whole and all the residential units in the project must satisfy the conditions therein, namely, built-up area to be less than 1,500 sq.ft. On the admitted facts as to the units having built-up area more than 1,500 sq.ft., assessee was not eligible for deduction for the entire projects. Commissioner (Appeals) relying on the decision of the Tribunal, Kolkata Bench, in the case of Bengal Ambuja Housing Developments Ltd. v. CIT ITA No. 1595/Kol/2005, dt. 24-3-2006 held that the assessee was entitled to deductions under section 80-IB(10)(c) Tribunal disallowed the same. <b.Held: Was not justified as in statute nowhere it was stated that proportionate deduction under section 80-IB(10) should not be allowed, in case certain residential units had built up area in excess of prescribed limit of 1,500 sq.ft.

Income Tax Act, 1961, Section 80-IB

In the Madras High Court

Chitra Venkataraman & K. Ravichandra Baabu, JJ.

Viswas Promoters (P.) Ltd. v. Asstt. CIT & Ors.

Tax Case (Appeal) Nos. 1014 of 2009, 857 of 2010 & 190 to 192 of 2012; Writ Appeal No. 471 of 2010

A.Ys. 2004-05 to 2008-09

2 November, 2012

Income-tax Act, 1961, ss. 80HHBA, Expln. (a) & 80-IB(10) In favour of: Assessee

Assessee by : C.V. Rajan for R. Sivaraman

Revenue by : T. R. Senthil Kumar

JUDGMENT

Chitra Venkataraman, J.

The assessee is on appeal as against the order of the Tribunal relating to the assessment years 2004-05, 2005-06, 2006-07, 2007-08 and 2008-09 in Tax Case No. 1014 of 2009, Tax Case No. 857 of 2010 and Tax Case Nos. 190, 191 and 192 of 2012 respectively. Although a composite question of law is raised in these tax cases, since the issues relate to the same transaction, the substantial questions of law framed in respect of the assessment year 2004-05 in Tax Case No. 1014 of 2009 extracted herein, fit in with the questions raised in the other cases too and hence, are apposite to other tax cases. The substantial questions of law raised in respect of assessment year 2004-05 read as under :