ITO, Ward-12(1), Pune v. Nirmitee & Associates
[Citation -2019-LL-0904-26]

Citation 2019-LL-0904-26
Appellant Name ITO, Ward-12(1), Pune
Respondent Name Nirmitee & Associates
Court ITAT-Pune
Relevant Act Income-tax
Date of Order 04/09/2019
Assessment Year 2012-13
Judgment View Judgment
Keyword Tags benefit of deduction • proportionate basis • claim of deduction • disallowance of deduction
Bot Summary: CIT(A) to allow deduction u/s.80IB(10) of the Income-tax Act, 1961 on pro-rata basis. In its objections, and in the alternate, the assessee submitted that the deduction should be allowed on proportionate basis. Not convinced, the AO denied the benefit of full amount of deduction u/s.80IB(10) at Rs.4.36 crore. There is no dispute on the fact that the assessee is 3 ITA No.1050/PUN/2017 M/s. Nirmitee Associates otherwise eligible for deduction u/s.80IB(10) of the Act fulfilling all the stipulated requirements. The AO denied the benefit of deduction for the entire amount of deduction u/s.80IB(10) only on the ground that out of the total project, only two flats admeasured more than the stipulated 1500 sq. CIT(A) in holding for the proportionate deduction has relied on several decisions including the order of the Mumbai Tribunal in M/s. Suncity Housing Vs. ACIT in ITA No.5183/Mum/2014 dated 30-05-2016 and another decision of Pune Bench in the case of DCIT Vs. Sai Drishti Construction in ITA No.991/PUN/2014, dated 15-02-2016. DR. Since the impugned order is based on several Tribunal orders granting deduction u/s.80IB(10) on proportionate basis, respectfully following the precedents, we approve the action of the ld.


IN INCOME TAX APPELLATE TRIBUNAL PUNE BENCH C , PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER ITA No.1050/PUN/2017 Assessment Year : 2012-13 ITO, Ward-12(1), M/s. Nirmitee & Associates, Pune Vs. 8 Namjoshi Bhavan, LBS Road, Navi Peth, Pune 411 030 PAN : AAGFN2080H (Appellant) (Respondent) Assessee by Shri V. Jayraman Revenue by Shri Pankaj Garg Date of hearing 03-09-2019 Date of pronouncement 04-09-2019 / ORDER PER R.S.SYAL, VP : This appeal by Revenue is directed against order passed by Commissioner of Income-tax (Appeals)-5, Pune on 09-12-2016 in relation to assessment year 2012-13. 2. only issue raised in this appeal is against direction of ld. CIT(A) to allow deduction u/s.80IB(10) of Income-tax Act, 1961 (hereinafter also called `the Act ) on pro-rata basis. 2 ITA No.1050/PUN/2017 M/s. Nirmitee & Associates 3. Succinctly, facts of case are that assessee firm is engaged in activity of Promoters and Builders. During year under consideration, it carried out construction of housing project, namely Nirmiti Zion , S.No.36/3 and 36/4, Balewadi, Pune. assessee claimed deduction u/s. 80IB(10) amounting to Rs.4,36,38,861/-. To verify eligibility of claim of deduction, Government approved valuer was commissioned by AO to conduct enquiry of aforesaid project vis-a-vis provisions of section 80IB(10). Valuer submitted his report stating that two duplex flats bearing Nos. 901 and 902 were having areas of 2609.48 sq.ft. as against provisions of section 80IB(10) providing for area of residential unit located in cities other than Mumbai and Delhi at less than 1500 sq.ft. assessee was confronted with report. In its objections, and in alternate, assessee submitted that deduction should be allowed on proportionate basis. Not convinced, AO denied benefit of full amount of deduction u/s.80IB(10) at Rs.4.36 crore. ld. CIT(A) held that proportionate deduction should be allowed in respect of eligible flats after excluding profits of non-eligible flats. Revenue has approached Tribunal against this finding. 4. We have heard both sides and gone through relevant material on record. There is no dispute on fact that assessee is 3 ITA No.1050/PUN/2017 M/s. Nirmitee & Associates otherwise eligible for deduction u/s.80IB(10) of Act fulfilling all stipulated requirements. AO denied benefit of deduction for entire amount of deduction u/s.80IB(10) only on ground that out of total project, only two flats admeasured more than stipulated 1500 sq.ft. area. But for that, there is no objection of AO to any of conditions stipulated in section 80IB(10). In this regard, it is observed that ld. CIT(A) in holding for proportionate deduction has relied on several decisions including order of Mumbai Tribunal in M/s. Suncity Housing Vs. ACIT in ITA No.5183/Mum/2014 dated 30-05-2016 and another decision of Pune Bench in case of DCIT Vs. Sai Drishti Construction in ITA No.991/PUN/2014, dated 15-02-2016. No contrary decision has been brought on record by ld. DR. Since impugned order is based on several Tribunal orders granting deduction u/s.80IB(10) on proportionate basis, respectfully following precedents, we approve action of ld. CIT(A). 5. In result, appeal is dismissed. Order pronounced in Open Court on 04th September, 2019. Sd/- Sd/- (PARTHA SARATHI CHAUDHURY) (R.S.SYAL) JUDICIAL MEMBER VICE PRESIDENT Pune; Dated : 04th September, 2019 4 ITA No.1050/PUN/2017 M/s. Nirmitee & Associates /Copy of Order is forwarded to: 1. / Appellant; 2. / Respondent; 3. CIT(A)-5, Pune 4. Pr.CIT-4, Pune 5. , , / DR C , ITAT, Pune; 6. / Guard file. / BY ORDER, // True Copy // Senior Private Secretary , / ITAT, Pune Date 1. Draft dictated on 03-09-2019 Sr.PS 2. Draft placed before author 03-09-2019 Sr.PS 3. Draft proposed & placed JM before second member 4. Draft discussed/approved JM by Second Member. 5. Approved Draft comes to Sr.PS Sr.PS/PS 6. Kept for pronouncement on Sr.PS 7. Date of uploading order Sr.PS 8. File sent to Bench Clerk Sr.PS 9. Date on which file goes to Head Clerk 10. Date on which file goes to A.R. 11. Date of dispatch of Order. ITO, Ward-12(1), Pune v. Nirmitee & Associate
Report Error