The Commissioner Of Income-Tax vs M/S S N Builders & Developers

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     IN THE HIGH COURT OF KARNATAKA AT BENGALURU

        DATED THIS THE 7TH DAY OF JANUARY 2021

                         PRESENT

         THE HON'BLE MR. JUSTICE ALOK ARADHE

                               AND

     THE HON'BLE MR. JUSTICE NATARAJ RANGASWAMY

                  I.T.A. NO.401 OF 2014
BETWEEN:

1.     THE COMMISSIONER OF INCOME-TAX
       C.R. BUILDING, QUEENS ROAD
       BANGALORE.

2.     THE ASST. COMMISSIONER OF INCOME TAX
       CIRCLE-4(1)
       UNITY BUILDING ANNEXE
       MISSION ROAD, BANGALORE-560 027.
                                              .... APPELLANTS
(BY MR. K.V. ARAVIND, ADV.,)

AND:

M/S. S N BUILDERS & DEVELOPERS
S.N.N. AGORA, RAJ LAKE VIEW
NO.3761, 29TH MAIN, BTM II STAGE
N.S.PALYA MAIN ROAD
BANGALORE-560 076.
                                           ... RESPONDENT
(BY MR. A. SHANKAR, SR. COUNSEL FOR
    MR. M. LAVA, ADV.,)
                           ---

      THIS I.T.A. IS FILED UNDER SEC. 260-A OF INCOME TAX
ACT 1961, ARISING OUT OF ORDER DATED 11.04.2014 PASSED
IN ITA NO.654/BANG/2013 FOR THE ASSESSMENT YEAR 2009-10,
PRAYING TO:
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     (i) FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW
STATED ABOVE.
     (ii) ALLOW THE APPEAL AND SET ASIDE THE ORDER
PASSED BY THE ITAT, BANGALORE IN ITA NO.654/BANG/2013
DATED 11.04.2014 CONFIRMING THE ORDER OF THE APPELLATE
COMMISSIONER AND CONFIRM THE ORDER PASSED BY THE ASST.
COMMISSIONER OF INCOME TAX, CIRCLE-4(1), BANGALORE.

     THIS I.T.A. COMING ON FOR HEARING,                THIS      DAY,
ALOK ARADHE J., DELIVERED THE FOLLOWING:

                          JUDGMENT

This appeal under Section 260-A of the Income Tax Act, 1961 (hereinafter referred to as 'the Act', for short) has been filed by the revenue. The subject matter of the appeal pertains to the Assessment Year 2009-10. The appeal was admitted by a Bench of this Court vide order dated 28.07.2015 on the following substantial questions of law:

"1. Whether the Hon'ble Tribunal is right in holding that the assessee is eligible for proportionate deduction under section 80IB(10) when according to provisions of section 80IB(10) of the Act, one of the conditions to be fulfilled for claiming deduction is that the total built up area of the residential units in the housing project shall not exceed 1500 square feet in the city of Bangalore.?

2. Whether the Tribunal is right in holding that the project completion method is a recognized 3 method of accounting without examining as to whether the assessee entitled to the project completion method in the absence of regular books of accounts required to be maintained by the assessee?".

3. For the reasons assigned by us in ITA No.393/2014 passed today, this appeal stands dismissed.

Sd/-

JUDGE Sd/-

JUDGE RV