Income Tax Appellate Tribunal - Pune
Mahesh Pandurang Bhagwat,, Pune vs Department Of Income Tax on 7 August, 2012
IN THE INCOME TAX APPELLATE TRIBUNAL
PUNE BENCH "B", PUNE
Before Shri Shailendra Kumar Yadav, Judicial Member,
and Shri R.K.Panda, Accountant Member.
ITA.No.824/PN/2011
(Asstt. Year : 2008-09)
DCIT, Circle-3,
Pune. .. Appellant
Vs.
Mahesh Pandurang Bhagwat,
1007-1009, Janki Corner,
Sadashiv Peth,
Pune.
PAN: ABBPB2876P .. Respondent
Appellant by : Shri Y.K.Bhaskar
Respondent by : Shri S.N.Doshi
Date of Hearing : 07.08.2012
Date of Pronouncement : 28.08.2012
ORDER
PER SHAILENDRA KUMAR YADAV, JM:
This appeal has been filed by the Revenue against the order of the CIT(A) on the point of claim of deduction u/s.80IB(10). The CIT(A), following decision for A.Y. 2007-08 in assessee's own case has allowed the appeal in favour of the assessee. Same has been opposed before us. The Ld. Authorised Representative pointed out that the issue at hand in A.Y. 2007-08, which has been followed by CIT(A) has been confirmed by the Tribunal by observing as under:
4. Having heard the rival submissions and perused the material on record, we find that the issue raised by the Revenue in this appeal is squarely covered in favour of the assessee, by the decision of co-ordinate Bench of this Tribunal in the case of M/s Bunty Builders (supra). In the case of M/s Bunty Builders (supra) there were deductions mentioned for road widening area, open space, area under internal roads, amenities spaces and transformer and the net area after deduction came only to 2923.25 sq. mtrs. The Tribunal also relied upon the CBDT circular No. 5 of 2005 dated 15-7-2005 which contained the explanatory notes on amendments brought out by the Finance Act (No. 2) cited in 276 ITR 170 (Statute), wherein the guidelines issued were as follows:
"Extension of the time limit for obtaining approval of housing projects for the purpose of tax holiday under section 80-IB and allowing deduction for re-development or reconstruction of existing building in slum areas.2
This section does not specifically provide area limit for the garden, the development plan roads, internal means of access, etc., in the housing project. Therefore, the same should conform to the project plan approved by the local authority in accordance with the regulations in force. Also, the area limit of the plot has to be construed with reference to the area of the site on which the housing project is constructed and not with reference to the demarcation of land done by the land development authority".
5. Respectfully following the aforesaid decision of the Tribunal in the case of Bunty Builders (supra), we hold that the assessee is entitled to deduction u/s 80IB(10) of the Act based on the area of the plot as per 7/12 extract being 4500 sq. mtrs, which is more than the minimum stipulated area of one acre (4047 sq. mtrs). Accordingly, we direct the authorities below to allow the deduction u/s 80-IB(10) as claimed by the assessee.
2. Nothing contrary was brought to our knowledge by Revenue. The facts being similar, following same reasoning, we are not inclined to interfere with the finding of the CIT(A) who has allowed the deduction u/s.80IB(10) based on the area of plot as per 7/12 extract being 450 sq. mt. which is more than minimum stipulated area of 1 acre (4047 sq.mt.). Same is upheld.
3. In the result, the appeal filed by the Revenue is dismissed.
Pronounced in the open court on this the 28th day of August, 2012.
Sd/- Sd/-
( R.K.PANDA ) ( SHAILENDRA KUMAR YADAV )
ACCOUNTANT MEMBER JUDICIAL MEMBER
gsps
Pune, dated the 28th August, 2012.
Copy of the order is forwarded to:
1. The Assessee
2. The DCIT, Circle-3, Pune.
3. The CIT(A)-II, Pune.
4. The CIT-II, Pune.
5. The DR "B" Bench, Pune.
6. Guard File.
By Order
//TRUE COPY//
Private Secretary,
Income Tax Appellate Tribunal,
Pune.