Commissioner of Income-tax Bangalore-III, Bangalore / Dy. Commissioner of Income-tax Circle-12(2), Bangalore v. Oceanus Dwellings Pvt. Ltd
[Citation -2020-LL-0922-24]

Citation 2020-LL-0922-24
Appellant Name Commissioner of Income-tax Bangalore-III, Bangalore / Dy. Commissioner of Income-tax Circle-12(2), Bangalore
Respondent Name Oceanus Dwellings Pvt. Ltd.
Court HIGH COURT OF KARNATAKA
Relevant Act Income-tax
Date of Order 22/09/2020
Assessment Year 2008-09
Judgment View Judgment
Keyword Tags proportionate deduction • residential units • profits derived
Bot Summary: The subject matter of the appeal pertains to the Assessment year 2008-09. The appeal was admitted by a bench of this Court vide order dated 14.08.2013 on the following substantial questions of law: Whether in the given facts and circumstances of the case, the Tribunal was right in upholding the order of the Commissioner of Income Tax in directing the Assessing Officer to allow proportionate deduction under Section 80IB to the extent of profits attributable to the units, where the 3 built up area is below 1500 sq. Whether in the given facts and circumstances of the case, the Tribunal was right in law in holding that the assessee is entitled to claim deduction under Section 80IB in respect of profits derived from sale of residential units, wherein the built up area is below 1500 sq. Without appreciating the fact that the deduction under Section 80IB(10) is project based rather than unit and there is no concept of proportionate deduction under Section 80IB(10) 2. For the reasons assigned by us in the order passed today in ITA No.54/2013, the substantial questions of law are answered against the revenue and in favour of the assessee. 4 In the result, the appeal fails and is hereby dismissed.


1 IN HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS 22ND DAY OF SEPTEMBER 2020 PRESENT HON BLE MR. JUSTICE ALOK ARADHE AND HON BLE MR. JUSTICE H.T.NARENDRA PRASAD I.T.A. NO.290 OF 2013 BETWEEN: 1. COMMISSIONER OF INCOME TAX BANGALORE-III, BANGALORE. 2. DY. COMMISSIONER OF INCOME TAX CIRCLE-12(2), BANGALORE. ... APPELLANTS (BY SRI. E.I. SANMATHI, ADV.,) AND: M/S. OCEANUS DWELLINGS PVT LTD., NO.297, I FLOOR, I CROSS, 7TH MAIN BTM II STAGE, BANGALORE-560076. ... RESPONDENT (BY SRI. CHYTHANYA K.K. ADV.,) --- THIS I.T.A. IS FILED UNDER SECTION 260-A OF I.T.ACT, 1961, ARISING OUT OF ORDER DATED 06-02-2013 PASSED IN ITA NO.376/BANG/2012, FOR ASSESSMENT YEAR 2008-09, PRAYING TO: I. FORMULATE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN. 2 II. ALLOW APPEAL AND SET ASIDE ORDER OF ITAT, BANGALORE IN APPEAL PROCEEDINGS ITA NO.376/BANG/2012 DATED 06-02-2013 AND ORDER OF COMMISSIONER OF INCOME TAX, (APPEALS)-III, BANGALORE IN APPEAL ITA NO.106/C-12(2)/CIT(A)-III/10- 11 DATED 05-12-2011. THIS I.T.A. COMING ON FOR FURTHER HEARING, THIS DAY, ALOK ARADHE J., DELIVERED FOLLOWING: JUDGMENT This appeal under Section 260A of Income Tax Act, 1961 (hereinafter referred to as Act for short) has been preferred by revenue. subject matter of appeal pertains to Assessment year 2008-09. appeal was admitted by bench of this Court vide order dated 14.08.2013 on following substantial questions of law: (i) Whether in given facts and circumstances of case, Tribunal was right in upholding order of Commissioner of Income Tax (Appeals) in directing Assessing Officer to allow proportionate deduction under Section 80IB to extent of profits attributable to units, where 3 built up area is below 1500 sq.ft.? (ii) Whether in given facts and circumstances of case, Tribunal was right in law in holding that assessee is entitled to claim deduction under Section 80IB in respect of profits derived from sale of residential units, wherein built up area is below 1500 sq.ft. without appreciating fact that deduction under Section 80IB(10) is project based rather than unit and there is no concept of proportionate deduction under Section 80IB(10)? 2. For reasons assigned by us in order passed today in ITA No.54/2013, substantial questions of law are answered against revenue and in favour of assessee. 4 In result, appeal fails and is hereby dismissed. Sd/- JUDGE Sd/- JUDGE SS Commissioner of Income-tax Bangalore-III, Bangalore / Dy. Commissioner of Income-tax Circle-12(2), Bangalore v. Oceanus Dwellings Pvt. Ltd
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