Ita/55/2013 Of The Commissioner Of Income Tax v. M/S Brigade Enterprises Ltd

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 22 DAY OF SEPTEMBER 2020. PRESENT THE HON’BLE MR. JUSTICE ALOK ARADHE AND| THE HON’BLE MR. JUSTICE H.T.NARENDRA PRASAD I.T.A. NO.55/2013 BETWEEN: 1.THE COMMISSIONER OF INCOME-TAXC.R. BUILDING, QUEENS ROADBANGALORE.C.R. BUILDING, QUEENS ROADBANGALORE. 2.THE DY. COMMISSIONER OF INCOME-TAX |CIRCLE-11(2), C.R. BUILDINGQUEENS ROAD, BANGALORE.CIRCLE-11(2), C.R. BUILDINGQUEENS ROAD, BANGALORE. .., APPELLANTS. (BY SRI. K.V. ARAVIND, ADV.,) AND: M/S. BRIGADE ENTERPRISES LID.,PENT HOUSE, BRIGADE TOWERS.NO.135, BRIGADE TOWERSBANGALORE-560025. .. RESPONDENT (BY SRI. CHYTHANYA K.K. ADV.) THIS ITA IS FILED UNDER SECTION 260-A OF I.T. ACT,1961 ARISING OUT OF ORDER DATED 07.09.2017 PASSED IN [TA|NO.1357/BANG/2010 FOR THE ASSESSMENT YEAR 2008-09,|PRAYING THAT THIS HON'BLE COURT MAY BE PLEASED TO: (1) FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW.STATED THEREIN. (I) ALLOW THE APPEAL AND SET ASIDE THE ORDERS)PASSED BY THE ITAT, BANGALORE IN ITA NO.1357/BANG/2010|DATED O0O/7-09-2012 CONFIRMING THE ORDER OF THE APPELLACOMMISSIONER AND CONFIRM THE ORDER PASSED BY THE!DEPUTY COMMISSIONER OF INCOME TAX OFFICER, CIRCLE-11(2),BANGALORE. THIS ITA COMING ON FOR FURTHER HEARING, THIS DAY,ALOK ARADHE J.,DELIVERED THE FOLLOWING: JUDGMENT This appeal under Section 260A of the Income Tax|Act, 1961 (hereinafter referred to as the Act for short)has been preferred by the revenue. The subject matterof the appeal pertains to the Assessment year 2008-09.The appeal was admitted by a bench of this Court videorder dated 07.06.2013 on the following substantialquestions of law:| (I)Whether the appellate authorities were|correct in holding that the assessee firmis eligible for deduction under Section|SOIB(10) of the Income-Tax Act witnout|appreciating that the assessee has not|satisfied the requirements as laid down|in clauses (a) to (d) of sub-Section (1)|of Section 80IB(10) of the Act?|correct in holding that the assessee firmis eligible for deduction under Section|SOIB(10) of the Income-Tax Act witnout|appreciating that the assessee has not|satisfied the requirements as laid down|in clauses (a) to (d) of sub-Section (1)|of Section 80IB(10) of the Act?| (iI)Whether the appellate authorities were|correctIn|allowing|proportionate|deduction under Section 80IB(10) in|respect of the individual units measuringless than 1,500 sq.ft. contrary to the|provisions of Section 80IB(10) of the|Act,when|Sectioncontemplatesfulfillment of condition of less than 1500|sq.ft. in respect of the entire project?correctIn|allowing|proportionate|deduction under Section 80IB(10) in|respect of the individual units measuringless than 1,500 sq.ft. contrary to the|provisions of Section 80IB(10) of the|Act,when|Sectioncontemplatesfulfillment of condition of less than 1500|sq.ft. in respect of the entire project? (iI)Whether the appellate authorities werecorrect in holding tnat the assessee Is entitled to deduction under Section|SOIB(10) of the Act, admittedly when|the commercial area in tne project was|more tnan 5% by nolding that eacn|residential block has to be taken Into|consideration for computing percentage|of commercial area, when the provision|contemplates fulfillment of conaitions for|theentireprojectandrecordedaperverse finding?correct in holding tnat the assessee Is entitled to deduction under Section|SOIB(10) of the Act, admittedly when|the commercial area in tne project was|more tnan 5% by nolding that eacn|residential block has to be taken Into|consideration for computing percentage|of commercial area, when the provision|contemplates fulfillment of conaitions for|theentireprojectandrecordedaperverse finding? 2D For the reasons assigned by us in the order passed today in ITA No.54/2013, the substantial| C31.8-94.�9:�2/A�/61�/4.A1615�/B/-4.8�8,1�61?1431�/45� -4�:/?936�9:�8,1�/..1..11��� �4�8,1�61.328 �8,1�/001/2�:/-2.�/45�-.�,161=>� 5-.;-..15�� ..� ����������� �����������