Case Law Details
Brief Facts of the Case and Question
Brief Facts:The assessee has filed its return of income on 31-12-2006 declaring total income at Rs. Nil. The assessee had claimed deduction at Rs. 1,91,400/- u/s. 80IB(10) of the income tax act. The Point of issue was the assessee has carried out the construction in violation of the original plan passed by AUDA and therefore violated the condition of section 80IB(10).
Question Raised:
1 Whether the condition of section 80IB(10) is violated if assessee constructed units more than permitted?
Contention of the Assessee
The Assessee did not agree with the views of Assessing officer and contended that the Assessee took BU permission for construction of 160 units and same view has been taken by CIT (A) that the appellant has BU permission for 160 units and once AUDA has given BU permission then there remains no basis to deny the deduction. so Assessee contended that deduction under section 80IB(10) cannot be denied .
Contention of Revenue:
Revenue contended that It is noticed that there is no change in the facts of the case as compared to that of A. Y. 2005-2006. Where the assessing officer did not allow deduction under 80IB(10) so this year also assessing officer relied on the same grounds, Assessing officer observed that the assessee has carried out the construction in violation of the original plan passed by AUDA so violated the condition of section 80IB(10). Assessing officer also contended that the assessee was given permission for 152 units by BU for construction but as per site it was 160 units. So Assessing officer contended that Assessee had breached the conditions of section 80IB(10). So the deduction of the said section is not available to assessee.
Held by ITAT:
ITAT held that After going through rival submissions it is seen that the disallowance u/s. 80IB(10) made by the Assessing Officer in AY 2005-06 was allowed through appellate order dated 9.7.2008.
And further Relying upon the appellate order in the case of the appellant in AY 2005-06 the Assessing Officer is directed to allow the deduction this year also because the facts of the case are same. In earlier year ie A/Y 2005-06 Assessing officer disallowed the deduction under section 80 IB and now also disallowed the same on the ground that B.U gave permission for 152 units and the assessee constructed 160 units but since CIT(A) held that the appellant has BU permission for 160 units and once AUDA has given BU permission then there remains no basis to deny the deduction.
So accordingly the Appeal of revenue is dismissed.
