M/s. T.K. Developers,, Aurangabad v. Deputy Commissioner of Income-tax,,

CO 77/PUN/2014 | 2009-2010
Pronouncement Date: 28-11-2014 | Result: Allowed

Appeal Details

RSA Number 7724523 RSA 2014
Assessee PAN AAEFT9476F
Bench Pune
Appeal Number CO 77/PUN/2014
Duration Of Justice 4 month(s) 4 day(s)
Appellant M/s. T.K. Developers,, Aurangabad
Respondent Deputy Commissioner of Income-tax,,
Appeal Type Cross Objection
Pronouncement Date 28-11-2014
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted A
Tribunal Order Date 28-11-2014
Assessment Year 2009-2010
Appeal Filed On 24-07-2014
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A PUNE BEFORE SHRI G.S. PANNU ACCOUNTANT MEMBER AND MS. SUSHMA CHOWLA JUDICIAL MEMBER ITA NO.1428/PN/2013 (ASSESSMENT YEAR : 2010-11) DY. COMMISSIONER OF INCOME TAX CENTRAL CIRCLE AURANGABAD. . APPELLANT VS. M/S T. K. DEVELOPERS 215-216 APNA BAZAR JALNA ROAD AURANGABAD 431 001. PAN : AAEFT9476F . RESPONDENT C.O. NO.76/PN/2014 (ARISING OUT OF ITA NO.1428/PN/2013) (ASSESSMENT YEAR : 2010-11) M/S T. K. DEVELOPERS 215-216 APNA BAZAR JALNA ROAD AURANGABAD 431 001. PAN : AAEFT9476F . CROSS OBJECTOR VS. DY. COMMISSIONER OF INCOME TAX CENTRAL CIRCLE AURANGABAD. . APPELLANT IN APPE AL ITA NO.1429/PN/2013 (ASSESSMENT YEAR : 2009-10) DY. COMMISSIONER OF INCOME TAX CENTRAL CIRCLE AURANGABAD. . APPELLANT VS. M/S T. K. DEVELOPERS 215-216 APNA BAZAR JALNA ROAD AURANGABAD 431 001. PAN : AAEFT9476F . RESPONDENT C.O. NO.77/PN/2014 (ARISING OUT OF ITA NO.1429/PN/2013) (ASSESSMENT YEAR : 2009-10) M/S T. K. DEVELOPERS 215-216 APNA BAZAR JALNA ROAD AURANGABAD 431 001. PAN : AAEFT9476F . CROSS OBJECTOR VS. DY. COMMISSIONER OF INCOME TAX CENTRAL CIRCLE AURANGABAD. . APPELLANT IN APPE AL ITA NO.338/PN/2012 C.O.NO.17/PN/2013 DEPARTMENT BY : SHRI B. C. MALAKAR ASSESSEE BY : SHRI S. N. PURANIK DATE OF HEARING : 26-11-2014 DATE OF PRONOUNCEMENT : 28-11-2014 ORDER PER G. S. PANNU AM THE CAPTIONED APPEALS/CROSS-OBJECTIONS RELATE TO TH E SAME ASSESSEE THEREFORE THEY HAVE BEEN CLUBBED AND HEARD TOGETHE R AND A CONSOLIDATED ORDER IS BEING PASSED FOR THE SAKE OF CONVENIENCE A ND BREVITY. 2. THE APPEALS PREFERRED BY THE REVENUE ARISE FROM A COMMON ORDER PASSED BY THE COMMISSIONER OF INCOME TAX (APPEALS) AURANGABAD DATED 08.04.2013 WHICH IN TURN HAS ARISEN FROM TWO SEPA RATE BUT SIMILAR WORDED ASSESSMENT ORDERS DATED 27.12.2011 PASSED BY THE AS SESSING OFFICER U/S 143(3) R.W.S. 153C OF THE INCOME-TAX ACT 1961 (IN SHORT THE ACT) RELATING TO ASSESSMENT YEAR 2009-10 AND SECTION 143(3) OF THE A CT RELATING TO ASSESSMENT YEAR 2010-11 RESPECTIVELY. 3. IN BOTH THE APPEALS A COMMON ISSUE HAS BEEN RAI SED WHICH IS WITH RESPECT TO ASSESSEES CLAIM FOR DEDUCTION U/S 80IB( 10) OF THE ACT. IN ASSESSMENT YEARS 2009-10 AND 2010-11 ASSESSEE HAD CLAIMED DEDUCTION U/S 80IB(10) OF THE ACT IN RESPECT OF THE PROFITS DERIV ED FROM ITS HOUSING PROJECT AT RS.39 91 176/- AND RS.95 84 557/- RESPECTIVELY. TH E ASSESSING OFFICER MADE A PARTIAL DISALLOWANCE OF ASSESSEES CLAIM FOR DEDU CTION U/S 80IB(10) OF THE ACT. THE ASSESSING OFFICER WAS OF THE VIEW THAT TH E PROFITS CLAIMED TO BE EXEMPT U/S 80IB(10) OF THE ACT INCLUDED CERTAIN INT EREST INCOME WHICH ACCORDING TO HIM WAS NOT RELATED TO THE BUSINESS OF THE HOUSING PROJECT AND HENCE THE SAME WAS NOT ELIGIBLE FOR THE BENEFITS OF SECTION 80IB(10) OF THE ACT. ON THIS BASIS ASSESSING OFFICER DISALLOWED THE DED UCTION U/S 80IB(10) OF THE ITA NO.338/PN/2012 C.O.NO.17/PN/2013 ACT TO THE EXTENT OF RS.10 35 000/- AND RS.11 59 88 2/- IN ASSESSMENT YEARS 2009-10 AND 2010-11 RESPECTIVELY. THE CIT(A) HAS S ET-ASIDE THE ACTION OF THE ASSESSING OFFICER IN ITS ENTIRETY FOR ASSESSMENT YE AR 2010-11 AND IN SO FAR AS ASSESSMENT YEAR 2009-10 IS CONCERNED THE DEDUCTION U/S 80IB(10) OF THE ACT HAS BEEN DISALLOWED TO THE EXTENT OF RS.5 000/- AS AGAINST A DISALLOWANCE OF RS.10 35 000/- MADE BY THE ASSESSING OFFICER. IN T HIS BACKGROUND REVENUE IS IN APPEAL BEFORE US CHALLENGING THE RELIEF ALLOW ED BY THE CIT(A) WHEREBY THE DISALLOWANCE OF DEDUCTION U/S 80IB(10) OF THE ACT H AS BEEN CONFINED TO RS.5 000/- FOR ASSESSMENT YEAR 2009-10 AND NIL FO R ASSESSMENT YEAR 2010-11. 4. BY WAY OF THE CROSS-OBJECTIONS ASSESSEE HAS RAI SED A PRELIMINARY OBJECTION TO THE EFFECT THAT THE TAX EFFECT OF THE DISPUTE RAISED IN THE APPEALS OF THE REVENUE IS BELOW THE MONETARY LIMITS PRESCRIBED BY THE CBDT IN ITS INSTRUCTION NO.5 OF 2014 DATED 10.07.2014 PERMITTIN G FILING OF APPEALS BEFORE THE TRIBUNAL. SINCE THE ISSUE RAISED IN THE CROSS- OBJECTIONS INVOLVES A PRELIMINARY POINT THE SAME IS ADDRESSED AT THE THR ESHOLD. 5. THE FACTUAL MATRIX REGARDING THE TAX EFFECT IN R ESPECT OF THE ISSUES RAISED IN THE REVENUES APPEALS HAS NOT BEEN CONTRO VERTED BY THE LD. DEPARTMENTAL REPRESENTATIVE BEFORE US. 6. IN VIEW OF THE AFORESAID FACTUAL MATRIX IT IS E VIDENT THAT THE CAPTIONED APPEALS ARE NOT MAINTAINABLE AND ARE HIT BY THE MON ETARY LIMITS PRESCRIBED BY THE CBDT VIDE INSTRUCTION NO.5 OF 2014 (SUPRA) FOR FILING OF APPEALS BEFORE THE TRIBUNAL. NOTABLY AS PER THE CBDT INSTRUCTION NO. 5 OF 2014 (SUPRA) APPEAL BEFORE THE TRIBUNAL SHALL NOT BE FILED IN CASES WHE RE THE TAX EFFECT IN RESPECT OF THE ISSUES RAISED IS BELOW RUPEES FOUR LACS. ITA NO.338/PN/2012 C.O.NO.17/PN/2013 7. IN THE RESULT APPEALS OF THE REVENUE ARE HELD T O BE NON-MAINTAINABLE SINCE THE TAX EFFECT IN THE DISPUTE RAISED THEREIN IS BELOW THE MONETARY LIMITS PRESCRIBED BY CBDT FOR FILING OF APPEALS BEFORE THE TRIBUNAL. 8. RESULTANTLY WHEREAS THE APPEALS OF THE REVENUE ARE DISMISSED THE CROSS-OBJECTIONS OF THE ASSESSEE ARE ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 28 TH NOVEMBER 2014. SD/- SD/- (SUSHMA CHOWLA) (G.S. PANNU) JUDICIAL MEMBER ACCOUNTANT MEMBER PUNE DATED: 28 TH NOVEMBER 2014. SUJEET COPY OF THE ORDER IS FORWARDED TO : - 1) THE ASSESSEE; 2) THE DEPARTMENT; 3) THE CIT(A) AURANGABAD; 4) THE CIT AURANGABAD; 5) THE DR A BENCH I.T.A.T. PUNE; 6) GUARD FILE. BY ORDER //TRUE COPY// ASSISTANT REGISTRAR I.T.A.T. PUNE