Macro Marvel Projects Limited Vs ITO (ITAT Chennai)
Under section 80IB(10) the housing project contemplates commercial establishments or shops also.
Facts-
The assessee originally claimed the deduction of Rs. 28,32,048/- u/s. 80IB(10) in respect of its project named Marvel Apoorva and Wood Creek Country. Subsequently, the assessee revised its ROI restricting its claim of deduction in the project Marvel Apoorva only. The assessee in the revised statement of income claimed deduction of Rs. 68,79,782/- u/s. 80IB(10) of the Act in respect to projectMarvel Apoorva resulting thereby a net loss of Rs. 35,78,307/-.
The sum and substance of the entire history is that the only issue remains for adjudication is whether the assessee is entitled to claim deduction u/s. 80IB(10) of the Act in respect of housing project undertaken and constructed by it despite the fact that nominal part is commercial area.
Conclusion-
Held that the decision of the Hon’ble Supreme Court in the case of Sarkar Builders is squarely applicable. Wherein, the Hon’ble Supreme Court has gone a step further while interpreting the provisions of section 80IB(10) of the Act, made it clear that the housing project contemplates under this section that includes commercial establishments or shops also. It was further clarified that by way of amendment in the form of Clause (d), an attempt is made to restrict the size of the said shops and/ or commercial establishments.
FULL TEXT OF THE ORDER OF ITAT CHENNAI
This ITA 194/Mad/2008 is arising out of the order of the Commissioner of Income Tax (Appeals)-V, Chennai in appeal No. 103/2006-07 order dated 02.10.2007. The Assessing Officer challengedrectification order passed by CIT(A) in ITA 103/2006-07, rectifying the order of CIT(A) in ITA No. 103/200607 dated 26.06.2007. In ITA No. 2259/Chny/2007, the assessee is in appeal before Tribunal against the order of Commissioner of Income Tax (Appeals)-V, Chennai in ITA No. 103/2006-07 order dated 26.06.2007. Assessment was framed by the ITO, Company ward IV(1), Chennai for the AY 2003-04 u/s. 143(3) of the Income-tax Act, 1961 (herein after referred to as ‘the Act’) vide order dated 31.03.2006.
2. This matter travelled before Hon’ble High Court by various Miscellaneous Petitions and Hon’ble High Court finally in Tax Case Appeal No. 797, 870 & 871/2010 vide judgment dated 14.02.2022 remitted all the matters back to the file of the Tribunal by giving specific directions in para 12 as under:
“12. In view of the above submissions of the learned counsel for both sides, the impugned orders passed by the Tribunal are set aside. The matters are remanded to the Tribunal for passing appropriate orders on merits and also in the light of the decisions referred hereinabove. Such exercise shall be completed by the Tribunal as expeditiously as possible, after providing opportunity of hearing to the appellant. Accordingly, the Tax Case Appeals are disposed of. No costs.”
3. Before us now, Ld. Counsel for the assessee has filed the history of these appeals and submitted chart in which list of dates and events and table explaining TCA Nos before Hon’ble High Court, which are relatable to orders of the Tribunal. The following chart has been placed by Ld. Counsel for the assessee:-
LIST OF DATES AND EVENTS
