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Income Tax Appellate Tribunal - Bangalore

Dcit, Bangalore vs M/S Skyline Construction & Housing Pvt. ... on 4 November, 2016

               IN THE INCOME TAX APPELLATE TRIBUNAL
                        "A" BENCH : BANGALORE

        BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER
          AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER

                        ITA Nos.561 & 562/Bang/2011
                     Assessment years : 2005-06 & 2006-07

The Deputy Commissioner of              Vs.    M/s. Skyline Construction &
Income Tax,                                    Housing Pvt. Ltd.,
Central Circle 1(1),                           No.11, Hayes Road,
Bangalore.                                     Bangalore - 560 025.
                                               PAN: AAHCS 0232N
           APPELLANT                                   RESPONDENT

        Appellant by       : Shri G.R. Reddy, CIT-I(DR)
        Respondent by      : Shri K.R. Pradeep, CA

                  Date of hearing       : 01.11.2016
                  Date of Pronouncement : 04.11.2016


                                    ORDER

   Per Sunil Kumar Yadav, Judicial Member

These appeals are preferred by the revenue against the order of CIT(Appeals) on the common ground that the CIT(Appeals) has failed to appreciate the fact that relief u/s. 80IB(10) of the I.T. Act cannot be allowed to the projects, if one of the residential units exceeds 1500 sq.ft.

2. During the course of hearing of the appeals, the ld. counsel for the assessee has invited our attention that the CIT(Appeals) has adjudicated ITA Nos.561 & 562/Bang/2011 Page 2 of 3 the issue in the light of decision of the Tribunal in the case of Brigade Enterprises, 119 TTJ Bang 269. This order of the Tribunal was approved by the Hon'ble High Court of Karnataka. Copy of the judgment of the Hon'ble High Court is placed on record, in which the following question was referred to the Hon'ble High Court for consideration:-

"Whether the Appellate Authorities were correct in holding that the assessee would be entitled to claim deduction u/s. 80IB(10) of the Act in respect of its Millennium project despite the assessee not satisfying the conditions stipulated in Clauses (a) to (d) of Section 80IB(10) of the Act?"

3. The question referred to the Hon'ble High Court was answered in favour of the assessee and against the revenue.

4. Since the CIT(Appeals) has adjudicated the issue following the order of the Tribunal which was later on approved by the jurisdictional High Court, we find no infirmity in the order of CIT(Appeals). Accordingly, we confirm the same.

5. In the result, the appeals are dismissed.

Pronounced in the open court on this 04th day of November, 2016.

              Sd/-                                           Sd/-
       ( S. JAYARAMAN )                         (SUNIL KUMAR YADAV )
       Accountant Member                            Judicial Member

Bangalore,
Dated, the 04th November, 2016.
/D S/
                                           ITA Nos.561 & 562/Bang/2011
                            Page 3 of 3



Copy to:

1.   Appellant
2.   Respondent
3.   CIT
4.   CIT(A)
5.   DR, ITAT, Bangalore.
6.   Guard file

                                          By order



                                      Assistant Registrar,
                                      ITAT, Bangalore.