ACIT Vs Eagleton Property Holdings (ITAT Bangalore)
Whether the deduction under section 80IB(10) can be allowed on proportionate basis in respect of residential units having a built up area of 1500 sq.ft. or less. On this aspect, the CIT(A) held that the assessee would be entitled to deduction under section 80IB(10) of the Act on a proportionate basis in respect of housing units which are 1500 sq.ft. or less in built up area. Incidentally, the CIT(A) also held that in respect of an independent residential units, assessee would be entitled to claim deduction under section 80IB(10) of the Act.
We have heard the submissions of learned DR and reiterated the stand of the Revenue as reflected in the grounds of appeal filed before the Tribunal. We have considered the submissions of the learned DR and the grounds of appeal raised by the Revenue. On the aspect of the assessee being entitled to deduction on a proportionate basis in respect of units having built up area of 1500 sq.ft. or less, we find that the conclusions of the CIT(A) do not require any interference as the principle of proportionate deduction has been accepted by the Hon’ble Karnataka High Court. In CIT Vs. Brigade Enterprises Ltd. I.T.A. NO.373 OF 2014 Judgment dated 22.10.2020. which held that “On plain reading of clause (c) of Section 80IB(10) of the Act, it is evident that the same does not exclude the principle of proportionality in any manner. Therefore, we hold that the Commissioner of Income Tax (Appeals) as well as the Tribunal have rightly found that the assessee has complied with the requirement contained in clause (c) of Section 80IB(10) of the Act.”
In view of the aforesaid decision of the Hon’ble Karnataka High Court, we are of the view that there is no merit in the stand taken by the revenue in this appeal.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
This is an appeal by the assessee against the order dated 27.10.2016 of CIT(A)-5, Bangalore, relating to Assessment Year 2010-11. The grounds of appeal raised by the Revenue reads as follows:
