- (1.) THESE three appeals by Assessee and Revenue for assessment years 2005 -06 and 2006 -07 are against the orders of CIT(A) -VII, Hyderabad dated 27.12.2010. Revenue is aggrieved on the allowance of deduction under section 80IB by CIT(A) in both the assessment years whereas assessee is aggrieved on the confirmation of addition of Rs.1.78 crores by CIT(A) in A.Y. 2005 -06.
(2.) WE have heard learned D.R. and learned Counsel and perused the paper books placed on record by both parties.
(3.) BRIEFLY stated, assessee -company is engaged in real estate and construction business. During the year, company purchased land and sold plots after undertaking development works. There were search and seizure operations under section 132 on 07.11.2006 and proceedings are consequent to that. In the proceedings, A.O. consequent to admission by Managing Director of the Company of payment of money outside books in purchase of lands and also admission by recipient, an addition of Rs.1.78 crores was made, even though the assessee subsequently denied the payments. Issue of 80IB in AY2005 -06 and 2006 -07. Assessee claimed deduction under section 80IB of Rs. 1,88,00,917/ - in A.Y. 2005 -06 and Rs.45,64,600/ - in A.Y. 2006 -07 on the residential complex constructed and sold in the name of 'Jayadarshini Residency'. Assessing Officer asked for details. Assessee did not furnish complete details. Therefore, A.O. called for sale deeds and noticed that all the flats sold are above 1500 sft and exceeded the limits prescribed under the Act. Therefore, he denied the deduction.;