IN THE HIGH COURT FOR THE STATE OF TELANGANA AT

HYDERABAD

HONOURABLE SRI JUSTICE P.SAM KOSHY

AND

HON’BLE SRI JUSTICE SUDDALA CHALAPATHI RAO

ITTA NO.19 OF 2021

DATE: 06.01.2026

Between:

M/s. Modi Shelters Pvt. Ltd.,

a Company incorporated under the Companies

Act, 1956, having its Regd.Office at 8-2-120/76/A/B/16, 17, 18,

4th Floor, Ashoka Hitech Chambers, Road No.2, Banjara Hills,

Hyderabad, rep.by its Managing Director.

…. Appellant

and

Dy.Commissioner of Income Tax,

Circle-16(1), 1st Floor, Block-B, IT Tower,

Masab Tank, Hyderabad.

…. Respondent

JUDGMENT: (per Hon’ble Sri Justice P.Sam Koshy)

Heard Ms. K.Prabhavathi, learned counsel for the appellant

and Mr. K.Sudhakar Reddy, learned Senior Standing Counsel for the

Income Tax Department for the sole respondent.

2. The question of law involved in the instant appeal is, whether the terrace/balcony that is in the form of open to sky or portico/ porch area without walls could be included in computing the

built-up area for the purposes of determining eligibility for deduction under Section 8-IB of the Income Tax Act, 1961.

3. The question of law in the instant Appeal is one, which came up for consideration before this Division Bench in ITTA No.167 of 2012 and batch matters, of which one of the Appeals i.e., ITTA No.230 of 2016 was pertaining to the very same assessee, whose vide Appeal is the present one, stood decided by this Division Bench common judgment pronounced on 21.05.2025, thereby this Division Bench while allowing the Appeals had endorsed the view of the Division Bench of High Court of Gujarat in the case of Commissioner of Income Tax vs. Amaltas Associates, 2016 SCC Online Guj 4685

4. The factual matrix and the question of law involved in the instant Appeal are also identical. We are, therefore, of the considered opinion that present Appeal is squarely covered by the decision rendered by this Division Bench on 21.05.2025, for the aforesaid reasons, which apply equally to the present appeal itself.

5. In view of the same, the present Appeal stands allowed and the question of law stands answered in favour of the assessee and against the respondent. There shall be no order as to costs.

Pending miscellaneous applications if any shall stand closed.

__________________________________

P.SAM KOSHY, J __________________________________

SUDDALA CHALAPATHI RAO, J Date: 06.01.2026 kkm HONOURABLE SRI JUSTICE P.SAM KOSHY AND HON’BLE SRI JUSTICE SUDDALA CHALAPATHI RAO ITTA NO.19 OF 2021 Date: 06.01.2026 kkm