COMMISSIONER OF INCOME TAX, CHENNAI Vs. A.JAGADEESWARI

JUDGEMENT

(1.) The Revenue is the appellant herein. Though the respondent / Assessee has been served and her name appears in the Cause List, there is no representation on her behalf.

(2.) The respondent/Assessee filed the Return of Income Tax for the Assessment Year 2007-08 on 29.09.2008, admitting the income of Rs.28,69,400/- after claiming deduction under Section 80IB[10] of the Income Tax Act, 1961, as amended from time to time, a sum of Rs.4,99,11,555/- and it was processed on 27.02.2010. The Assessing Officer, in the course of completing assessment for the Assessment Year 2009-10, noticed the fact that the Assessee did obtain plan for construction of the entire plot of measuring slightly over one acre, where blocks ranging from A to L were constructed. It was also noticed that each block of flat was constructed on a plot measuring less than one acre and therefore, the Assessing Officer held that the project was not an unified project in an extent of one acre and treated each approval as a separate project extending in an area less than one acre and therefore, not allowed the claim of deduction under the said Section. The Assessing Officer has also placed reliance upon the Board of Direct Taxes Instructions No.4 of 2009 dated 20.06.2009 and that apart, the deduction allowed in respect of earlier orders has to be withdrawn and therefore, a notice under Section 148 of the Income Tax Act, 1961, was issued on 01.03.2013 for the Assessment Year 2008-09.

(3.) The Income Tax Officer, BW XV[1], Chennai, vide Assessment Order dated 08.03.2014, has concluded the assessment holding that similar view was taken for the year 2009-10, that is, each plan and approval is an independent project comprised in an area less than that specified in the Section and thus, not qualifying for the purported benefit of the deduction and accordingly, assessed the income at Rs.5,27,80,960/-.