Ita/76/2013 Of Commissioner Of Income Tax v. M/S M D Realtors Pvt 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 LT.A. NO.76 OF 2013 BEI|WEEN 1.COMMISSIONER OF INCOME TAX) BANGALORE-III, BANGALORE. 2.ASST. COMMISSIONER OF INCOME TAX|CIRCLE-12(1), BANGALORE.CIRCLE-12(1), BANGALORE. _.. APPELLANTS (BY SRI. E.I. SANMATHI, ADV.,) AND" M/S. M.D. REALTORS PVT. LTD.,|NO.150, EMBASSY POINT|1 FLOOR, INFANTRY ROAD |BANGALORE-560001. ... RESPONDENT (BY SRI. CHYTHANYA K.K. ADV.,) THIS IJ§.T.A. IS FILED UNDER SECTION 260-A OIL.T.ACT, 1961, ARISING OUT OF ORDER DATED 28-09-2012PASSED IN ITA NO.8/0/BANG/2011, FOR THE ASSESSMENTYEAR 2006-07, PRAYING TO: I. FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW|STATED THEREIN.» I]. ALLOW THE APPEAL AND SET ASIDE THE ORDER OF THE!ITAT, BANGALORE BEARING ITA NO.8/0/BANG/2011 DATED|28-09-2017 AND ORDER OF COMMISSIONER OF INCOME|TAX,(APPEALS )-ITI,BANGALOREIN|APPEAL|NO. ITANO.199/W-12(1)/CIT(A)-ITI/BANG/08-09 DATED 30.06.2011. THIS I.T.A. COMING ON FOR FURTHER HEARING, THISDAY,ALOK ARADHE J.,DELIVERED THE FOLLOWING: JUDGMENT This appeal under Section 260A of the Income Tax| Act, 1961 (hereinafter referred to as tne Act for short)has been preferred by the revenue. The subject matterof the appeal pertains to the Assessment year 2006-07.The appeal was admitted by a bench of this Court videorder dated 09.07.2013 on the following substantialquestions of law:| (i) Whether in the given facts and|circumstances of the case, the Tribunalwas right in law in upholding the orderof the Commissioner of [ncome Tax(Appeals) in directing the AssessingOfficer to allow proportionate deductionunder Section S8OIB to the extent ofprofits attributable to the units, where the built up area is below 1500 sq.ft. ? (il)Whether in the given factsand circumstances of the case, theTribunal was right in law in holding that.theadSSCSSCEISentitled|to.claimdeductionUnderSectionSOIBIn|respect of profits derived from sale of.residential units, wherein the built up—area Is below 1500 sq.ft. without.appreciating the fact that the deductionunder Section 80IB is project basedrather than unit and there I[s noconcept.ofproportionate|deductionunder Section 80IB(10)? 2 |For the reasons assigned by us in the order passed today in ITA No.54/2013, the substantialquestions of law are answered against the revenue andin favour of the assessee. �4�8,1�61.328 �8,1�/001/2�:/-2.�/45�-.�,161=>� 5-.;-..15�� ��������������������������