1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE22D DAY OF SEPTEMBER2020PRESENT THE HON’BLE MR. JUSTICE ALOK ARADHE AND THE HON’BLE MR. JUSTICE H.T.NARENDRA PRASAD I.T.A. NO.290 OF2013BETWEEN:
1. COMMISSIONER OF INCOME TAX BANGALORE-III, BANGALORE.
2. DY. COMMISSIONER OF INCOME TAX CIRCLE-12(2), BANGALORE. ... APPELLANTS (BY SRI. E.I. SANMATHI, ADV.,) AND: M/S. OCEANUS DWELLINGS PVT LTD., NO.297, I FLOOR, I CROSS, 7TH MAIN BTM II STAGE, BANGALORE-560076. ... RESPONDENT (BY SRI. CHYTHANYA K.K. ADV.,) - - - THIS I.T.A. IS FILED UNDER SECTION260A OF I.T.ACT, 1961, ARISING OUT OF ORDER
DATED0602-2013 PASSED IN ITA NO.376/BANG/2012, FOR THE ASSESSMENT YEAR200809, PRAYING TO: I. FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN. 2 II. ALLOW THE APPEAL AND SET ASIDE THE ORDER
OF THE ITAT, BANGALORE IN APPEAL PROCEEDINGS ITA NO.376/BANG/2012 DATED0602-2013 AND ORDER
OF THE COMMISSIONER OF INCOME TAX, (APPEALS)-III, BANGALORE IN APPEAL ITA NO.106/C-12(2)/CIT(A)-III/10- 11 DATED0512-2011. THIS I.T.A. COMING ON FOR FURTHER HEARING, THIS DAY, ALOK ARADHE J., DELIVERED THE FOLLOWING: JUDGMENT
This appeal under Section 260A of the Income Tax Act, 1961 (hereinafter referred to as the Act for short) has been preferred by the revenue. The subject matter of the appeal pertains to the Assessment year 2008-09. The appeal was admitted by a bench of this Court vide order dated 14.08.2013 on the following substantial questions of law: (i) Whether in the given facts and circumstances of the case, the Tribunal was right in upholding the order of the Commissioner of Income Tax (Appeals) in directing the Assessing Officer to allow proportionate deduction under Section 80IB to the extent of profits attributable to the units, where the 3 built up area is below 1500 sq.ft.?. (ii) Whether in the given facts and circumstances of the case, the Tribunal was right in law in holding that the assessee is entitled to claim deduction under Section 80IB in 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 deduction under Section 80IB(10) is project based rather than unit and there is no concept of proportionate deduction under Section 80IB(10)?.
2. For the reasons assigned by us in the order passed today in ITA No.54/2013, the substantial questions of law are answered against the revenue and in favour of the assessee. 4 In the result, the appeal fails and is hereby dismissed. Sd/- JUDGE Sd/- JUDGE SS