CIT Vs Indra Housing (Madras High Court)
Madras High Court held that deduction under section 80IB(10) of the Income Tax Act not eligible in absence of any demonstrable evidence regarding any expense incurred towards eligible project to substantiate development of eligible project.
Facts- The respondent, assessee firm, M/s.Indra Housing, claims to be engaged in the business of development of residential apartments, real estate and civil contract works. It filed its return of income declaring NIL income after claiming deduction under Section 80IB (10) of the Income Tax Act, of Rs.7,94,98,820/- on 11.10.2010 and a revised return on 12.10.2010. The case of the assessee was selected for scrutiny and scrutiny assessment was completed on 30.03.2013, after disallowing the deduction as claimed under Section 80IB (10) of the Act.
CIT(A) dismissed the appeal and affirmed the order of the Assessing Officer. Tribunal allowed the appeal. Being aggrieved, revenue has preferred the present appeal.
Conclusion- Claim for deduction under Section 80IB (10) of the Act does not merely depend upon the income and expenditure shown in the profit and loss account and the balance sheet, but on demand, to furnish proof of having undertaken the housing project individually or jointly, which in turn required, on demand, submission of necessary documents, including bills and vouchers of investment made in the project. That alone could satisfy the requirement of it being an undertaking. While the Assessing Officer and CIT (Appeals) closely scrutinised various documents, the Tribunal more or less mechanically accepted the case of the assessee.
