IN THE HIGH COURT FOR THE STATE OF TELANGANA:

HYDERABAD * * *

Income Tax Tribunal Appeal No.167 of 2012; Income Tax Tribunal Appeal No.229 of 2016;

and Income Tax Tribunal Appeal No.230 of 2016 Between:

M/s. Modi Builders & Realtors (P) Ltd.

and Others.

Appellants VERSUS Asst. Commissioner of Income Tax Circle-16 (2), Hyderabad, and Others.

Respondents COMMON JUDGMENT PRONOUNCED ON: 21.05.2025 THE HON’BLE SRI JUSTICE P.SAM KOSHY AND THE HON’BLE SRI JUSTICE NARSING RAO NANDIKONDA

1. Whether Reporters of Local newspapers may be allowed to see the Judgments? : Yes

2. Whether the copies of judgment may be marked to Law Reporters/Journals? : Yes

3. Whether His Lordship wishes to see the fair copy of the Judgment? : Yes __________________ P.SAM KOSHY, J * THE HON’BLE SRI JUSTICE P.SAM KOSHY AND THE HON’BLE SRI JUSTICE NARSING RAO NANDIKONDA + Income Tax Tribunal Appeal No.167 of 2012;

Income Tax Tribunal Appeal No.229 of 2016;

and Income Tax Tribunal Appeal No.230 of 2016 % 21.05.2025 # Between:

M/s. Modi Builders & Realtors (P) Ltd.

and Others. Appellants VERSUS Asst. Commissioner of Income Tax Circle-16 (2), Hyderabad, and Others.

Respondents ! Counsel for Appellants(s) : Mr. S. Ravi, learned Senior Counsel appearing on behalf of Mr. C.H.

Pushyam Kiran.

^Counsel for the Respondent(s) : Mr. J.V. Prasad, learned Senior Standing Counsel for the Income Tax Department.

? Cases referred

1. 2016 SCC Onlilne Guj 4685 THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE NARSING RAO NANDIKONDA Income Tax Tribunal Appeal No.167 of 2012; Income Tax Tribunal Appeal No.229 of 2016;

and Income Tax Tribunal Appeal No.230 of 2016

COMMON JUDGMENT:

(per the Hon’ble Sri Justice P.SAM KOSHY Since the issue arising in the instant batch of appeals is one and the same, we proceed to decide the instant appeals by way of this common judgment.

2. I.T.T.A.No.167 of 2012 is filed by the appellant herein under Section 260-A of the Income Tax Act, 1961 assailing the order passed by the Income Tax Appellate Tribunal, Hyderabad “A” Bench in I.T.A.No.1458/Hyd/2011 for the Assessment Year 2008-09, dated 22.03.2012 (for short, ‘the impugned order’); I.T.T.A.No.229 of 2016 is filed by the appellant under Section 260-A of the Income Tax Act, 1961 assailing the order passed by the Income Tax Appellate Tribunal, Hyderabad “A” Bench in I.T.A.No.1565/Hyd/2013 for the Assessment Year 2009-10, dated 29.01.2016 (for short, ‘the impugned order’); and I.T.T.A.No.230 of 2016 is filed by the appellant under Section 260-A of the Income Tax Act, 1961 assailing the order passed by the Income Tax Appellate Tribunal, Hyderabad “A” Bench in I.T.A.No.1566/Hyd/2013 for the Assessment Year 2009-10, dated

29.01.2016 (for short, ‘the impugned order’).

3. Heard Mr. S. Ravi, learned Senior Counsel appearing on behalf of Mr. C.H. Pushyam Kiran, learned counsel for the appellant, in all the appeals; and Mr. J.V. Prasad, learned Senior Standing Counsel for the Income Tax Department, for the sole respondent, in all the appeals.

4. For convenience, the facts in I.T.T.A.No.229 of 2016 are discussed hereunder.

5. The appellant herein is a real estate developer, (for short, ‘the assessee’). The assessee is engaged in the business of construction of residential units / bungalows which are duplexes surrounded by a compound wall. Each residential unit consists of a portico and an open terrace. In the course of business, the assessee filed its return of income for the Assessment Year 2009-10 on 21.09.2009 admitting an income of Rs.3,16,46,847/- and claimed the entire amount as deduction under Section 80-IB (10) showing taxable income at Rs.NIL. The same was processed under Section 143(1) of the Income Tax Act, 1961 on 30.03.2011. After scrutiny, the respondent had issued a notice under Section 143(2) of the Act.

6. After assessment, the respondent determined the total income of the assessee at Rs.3,41,41,862/- by making disallowances on two grounds, viz., disallowance of deduction under Section 80-IB (10) for a