Income Tax Appellate Tribunal Upholds Deduction Claimed by M/s. Nahar Builders Under Section 80IB(10) (of Income Tax Act, 1961)

Case Name:

Deputy Commissioner of Income-Tax, Circle – 5(2)(1), Mumbai vs. M/s. Nahar Builders

Key Takeaways:

1. The Income Tax Appellate Tribunal upheld the deduction claimed by M/s. Nahar Builders under section 80IB(10) (of Income Tax Act, 1961) for the assessment years 2013-14 to 2017-18.
2. The Tribunal found no illegality, infirmity, or perversity in the orders passed by the Commissioner of Income Tax (Appeals) and dismissed all the appeals filed by the Revenue.
3. The Tribunal’s decision was consistent with earlier orders passed in favor of the assessee for the assessment years 2008-09 to 2012-13.

Case Synopsis:

The Income Tax Appellate Tribunal, Mumbai Bench, regarding several appeals filed by the Deputy Commissioner of Income-Tax, Circle – 5(2)(1), Mumbai against M/s. Nahar Builders for different assessment years. The appeals were related to the disallowance of deduction claimed by the assessee under section 80IB(10) (of Income Tax Act, 1961).

The order mentions that the Deputy Commissioner of Income-Tax sought to set aside the impugned orders passed by the National Faceless Appeal Centre (NFAC) [Commissioner of Income Tax (Appeals), Delhi] regarding the assessment years 2013-14, 2014-15, 2015-16, 2016-17, and 2017-18. The Deputy Commissioner of Income-Tax challenged the orders passed by the Ld. CIT(A) which had deleted the disallowance made by the Assessing Officer (AO) in all the assessment years.

The Tribunal, after hearing the Authorized Representatives of the parties and perusing the orders passed by the Lower Revenue Authorities, found that in the earlier assessment years from A.Y. 2008-09 to A.Y 2012-13, the identical issue had already been decided by the Tribunal in favor of the assessee. It was also noted that the Revenue had accepted the order passed by the Tribunal in A.Y. 2008-09 to 2012-13 in the assessee’s own case by not challenging the same in the higher forum.

The Tribunal further mentioned that the Ld. CIT(A) had decided the issue of the allowability of deduction claimed by the assessee under section 80IB(10) (of Income Tax Act, 1961) of the Act by returning findings consistent with the earlier order passed by the Tribunal from A.Y. 2008-09 to 2012-13 on the identical issue in favor of the assessee. The Tribunal found no illegality, infirmity, or perversity in the impugned orders passed by the Ld. CIT(A) allowing the deductions claimed by the assessee under section 80IB(10) (of Income Tax Act, 1961) for A.Y. 2013-14 to 2017-18 and dismissed all the appeals filed by the Revenue.

In conclusion, the Tribunal upheld the orders passed by the Ld. CIT(A) and dismissed all the appeals filed by the Revenue.

FAQ:

Q1: What was the outcome of the appeals filed by the Deputy Commissioner of Income-Tax?

A1: The appeals filed by the Deputy Commissioner of Income-Tax against M/s. Nahar Builders were dismissed by the Income Tax Appellate Tribunal.

Q2: What was the issue in question?

A2: The appeals were related to the disallowance of deduction claimed by the assessee under section 80IB(10) (of Income Tax Act, 1961) for the assessment years 2013-14 to 2017-18.

Q3: What was the basis for the Tribunal’s decision?

A3: The Tribunal’s decision was based on the consistency with earlier orders passed in favor of the assessee for the assessment years 2008-09 to 2012-13.