Madras High Court
The Commissioner Of Income Tax vs M/S.Sanghvi And Doshi Enterprise on 12 November, 2014
Bench: R.Sudhakar, R.Karuppiah
In the High Court of Judicature at Madras Dated: 12.11.2014 Coram The Honourable Mr.JUSTICE R.SUDHAKAR and The Honourable Mr.JUSTICE R.KARUPPIAH Tax Case (Appeal) Nos.662 to 665 of 2014 & connected M.Ps. The Commissioner of Income Tax Chennai. .... Appellant in the above T.C.(A)s Vs. M/s.Sanghvi and Doshi Enterprise No.560, 3H Century Plaza, Anna Salai, Teynampet, Chennai 600 018. .... Respondent in the above T.C(A)s APPEALs under Section 260-A of the Income Tax Act against the order dated 26.02.2013 made in I.T.A.Nos.2176 & 2177/Mds/2012 & C.O.21 & 22/ Mds/2013 on the file of the Income Tax Appellate Tribunal, 'B' Bench for the assessment years 2007-08 and 2008-09. For Appellant : Mr.J.Naraynanaswamy Standing Counsel for Income Tax For Respondent : Mr.R.Sivaraman --------- C O M M O N J U D G M E N T
(Delivered by R.SUDHAKAR,J.) The above Tax Case (Appeals) are filed by the Revenue as against the order of the Income Tax Appellate Tribunal raising the following substantial questions of law:
T.C.(A)Nos.662 to 665 of 2014:
"1. Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that the assessee had satisfied the conditions laid down under Section 80IB(10) and is eligible for deduction under Section 80IB(10)?
2. Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that assessee cannot be treated only as a contractor as per the terms of the agreement between the owner of the land and the assessee for the purpose of claiming benefit under Section 80IB?
3. Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that developer or builder, is eligible for claiming benefit under Section 80IB(10), and assessee can be treated as developer or builder, eligible for claiming benefit under section 80IB(10)?
4. Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that assessee need not be a building cum developer for claiming deduction under Section 80IB(10)?
5. Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that assessee need not own the land and then develop cum build the housing project of the purpose of claiming deduction under Section 80IB(10)?
6. Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that assessee is entitled for deduction under Section 80IB(10) even though the construction work was outsourced to a subcontractor?
7. Whether on the factss and in the circumstances of the case, the Tribunal was right in holding that area of private terrace had to be excluded from the built up area of flats in the light of the definition for the arriving at the eligible built up area of 1500 sq.ft. for the purpose of deduction under Section 80IB(10)?
8. Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that the combined residential flats were sold separately under separate agreements and the flat owners had themselves carried out the work for combining the flats when the purchasers were barred from making any structural change as per the agreement and such structural changes have been made at the time of construction by the assessee?
9. Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that assessee is entitled for the deduction under Section 80IB(10) for the housing project with respect to residential flats with built up area not exceeding 1500 sq.ft. even though in the same housing project, the assessee had constructed flats exceeding built up area of 1500 sq.ft.
10. Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that the provisions of Section 80IB(10) provide for partial deduction to the housing project with respect to the residential flats with built up area of less than 1500 sq.ft. where the same project contains flats with built up area exceeding 1500 sq.ft.?"
T.C.(A)No.662 & 664 of 2014:
11. Whether on the factss and in the circumstances of the case, the Tribunal was right in holding that assessee had completed project within 31.3.2008 and had satisfied the provisions of Section 80IB(10)(a) with respect to the date of issue of completion certificate when the certificate was issued on 13.6.2008?"
2. The assessment in the above cases relate to the assessment years 2007-08 and 2008-09.
3. The issues involved in the above Tax Case (Appeals) that whether the assessee is entitled to deduction under Section 80IB(10) of the Income Tax Act has already been decided by this Court in the assessee's own case for the previous assessment years, namely, 2005-06 and 2006-07 in T.C.(A)Nos.581 & 582 of 2011 and 314 & 315 of 2012 dated 01.11.2012 in favour of the assessee and against the Revenue holding that for the purpose of considering the deduction, it is not necessary that the assessee, engaged in developing and construction of housing project, should be the owner of the property.
4. Hence, following the above-said decision of this Court, the above Tax Case (Appeals) are dismissed and the order of the Tribunal stands confirmed. No costs. Consequently, connected M.P.s are also dismissed.
Index :Yes/No (R.S.,J) (R.K.,J) Internet:Yes/No 12.11.2014 sl To 1. The Income Tax Appellate Tribunal, "B" Bench, Chennai. 2. 2. The Commissioner of Income Tax (Appeals) XII, Chennai 600 034. 3. The Income Tax Officer, Business Ward XV(3), Chennai. R.SUDHAKAR,J. AND R.KARUPPIAH,J. sl T.C.(A) Nos.622 to 625 of 2014 & connected M.Ps. 12.11.2014