ITA No. 8234/Mum/2025 (A.Y. 2012-13)

Parties Involved

Facts Summary

The assessee, Cosmos Constructions, claimed a deduction under section 80IB(10) of the Income-tax Act, 1961, for profits derived from a housing project named 'Cosmos Lounge' at Thane, consisting of three buildings: Orchid, Angelica, and Hollyhock. The Assessing Officer had accepted the claim in the previous assessment year, but in the current year, the Assessing Officer questioned the completion date of the project. The Commissioner of Income-tax (Appeals) directed the Assessing Officer to grant the deduction on a pro-rata basis if the completion certificates were not produced. The Revenue appealed against this order.…

Legal Issues

• 1. Whether the Commissioner of Income-tax (Appeals) was justified in directing the Assessing Officer to compute the deduction under section 80IB(10) on a pro-rata basis.
• 2. Whether the Commissioner of Income-tax (Appeals) was justified in directing the Assessing Officer to compute the deduction under section 80IB(10) on a pro-rata basis in respect of profit earned from buildings completed before 31.03.2012.

Judgment Outcome

Decided in favour of Revenue.

Precedents Relied Upon

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