Case Law Details
M/s Varun Developers Vs CIT, Bangalore (Karnataka High Court)- In view of the submission made to consider whether the calculations have to be made on completion of the project after registering the plots in favor of the intended purchasers or customers, who had invested the amount from time to time, or as and when the amount is paid and accrued to the benefit of the petitioner for each assessment years and, also to consider the deductions available as per Section. 801B(10) of the Act and to pass appropriate orders in accordance with law, the matter is remanded to the Assessing Officer by quashing the impugned orders passed by the Assessing Officer as well as by the Revisional Authority. All the contentions are left open to be urged, Petitions are accordingly allowed.
IN THE HIGH COURT OF KARNATAKA AT BANGALORE
DATED THIS THE 14TH DAY OF FEBRUARY 2011
WRIT PETITION NOS. 26344-45 OF 2010 (T-IT)
M/s Varun Developers Vs CIT, Bangalore
THESE WRIT PETITIONS ARE FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUION OF INDIA PRAYING TO QUASH THE IMPUGNED ORDER ISSUED UNDER SECTION 264 OF THE IT ACT DATED 30.03.2010 ISSUED BY THE LEARNED RESPONDENT ENCLOSED AS ANNEXURE A.
THESE WRIT PETITIONS COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP THIS DAY, THE COURT MADE THE FOLLOWING:
ORDER
Petitioner has sought for to quash the impugned order , dated 30.03.2010 at Annexure ‘A’ passed by the respondent under Section 264 of the Income Tax Act by issuing writ of certiorari and to issue writ of mandamus directing the respondent to reinstate the project completion method in computing the income of the petitioner and to allow deduction under Section 80-IB(10) of the Act and to set aside the assessment order passed by the Deputy Commissioner of Income’ Tax or in the alternative, to permit the petitioner pursue the remedy by way of appeal against the original assessment orders before the appellate authorities by condoning the delay.
2. According to the petitioner, it is an Association of persons engaged in development and construction of apartments. For the years 2006-2007 and 2007-2008, petitioner filed income tax returns. Thereafter, revised statement is said to have been filed for the assessment year 2006-2007 and 2007-2008 as per Annexures J and K Accordingly, during December 2007 and May 2008, the Assessing Officer namely, the Deputy Commissioner of Income Tax has passed an order of assessment exercising power under Section 143(3) of income Tax Act for the year 2006-2007 and 2007-2008 respectively. Being aggrieved, petitioner has sought for revision of the Assessment Orders of both the assessment years before the respondent-Commissioner of Income Tax, wherein a composite order has been passed by the Revisional authority acting under Section 264 of the Income Tax Act for the two assessment years on 30.3.2010 declining to interfere with the orders passed by the Assessing Officer on the ground that, it was clearly mentioned by the petitioner in the revised statements of income filed for two assessment years that in order to avoid protracted litigation and to buy peace with the Department, the revised statement is being filed adopting proportionate completion method, although the Assessing Officer has given a show cause notice to adopt the percentage -completion method, the assessee Las replied requested to refrain from adopting the percentage completion method. As such, the contention of the petitioner that -the revised statements were filed at the instance of the Assessing Officer cannot be accepted.
3. Heard.
4. In the case on hand, the main grievance of the petitioner is, neither the Assessing Officer nor the Revisional Authority namely, the Commissioner of Income Tax have taken into consideration the tax holidays and the exemption granted as per Section 80IB(10) of the Income Tax Act and according to him, the registration that is made after completion ought to have been taken into consideration apart from the exemption that is available to the petitioner in so far as the plots/residential buildings which are constructed and which are below the dimension of 1500 sq. ft and that he has filed the revised assessment statement after having calculated all the exemptions and tax holidays into consideration.
5. In view of the submission made to consider whether the calculations have to be made on completion of the project after registering the plots in Cavour of the intended purchasers or customers, who had invested the amount from time to time, or as and when the amount is paid and accrued to the benefit of the petitioner for each assessment years and, also to consider the deductions available as per Section. 801B(10) of the Act and to pass appropriate orders in accordance with law, the matter is remanded to the Assessing Officer by quashing the impugned orders passed by the Assessing Officer as well as by the Revisional Authority. All the contentions are left open to be urged, Petitions are accordingly allowed.
Petitioner to appear before the Assessment Officer on 15.03.2011.
