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