Allowed¶52

M/s. Modi Shelters Pvt. Ltd., v. Dy. Commissioner of Income Tax

Telangana HC6 Jan 2026ITTA/19/2021

Case brief

AI extract

What is this about?

Modi Shelters Pvt Ltd; Section 80-IB deduction; built-up area computation; open-to-sky terrace/balcony; portico/porch without walls; ITA No.1292/Hyd/2016; ITAT Hyderabad 'B' Bench; Assessment Year 2012-13; Section 260A appeal; CIT(A) Appeal No.0157/DCIT Cir.16(1)/15-16/CIT(A):4/Hyd/2016-17 dated 18.07.2016; assessment order dated 31.03.2015; CIT v. Amaltas Associates 2016 SCC Online Guj 4685; ITTA No.167 of 2012 batch; common judgment dated 21.05.2025; Telangana High Court Division Bench (P. Sam Koshy, J.); appeal allowed in favour of assessee.

What did the court decide?

Appeal allowed; question of law answered in favour of the assessee and against the respondent; no order as to costs; pending miscellaneous applications, if any, stand closed. ¶52

M/s. Modi Shelters Pvt. Ltd., Vs Dy. Commissioner of Income Tax — Income Tax | Telangana HC (2026)

What the court decided

AI extract

Outcome

Appeal allowed; question of law answered in favour of the assessee and against the respondent; no order as to costs; pending miscellaneous applications, if any, stand closed.

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Issue for consideration

Whether a terrace/balcony in the form of open-to-sky area, or a portico/porch area without walls, could be included in computing the built-up area for determining eligibility for deduction under Section 80-IB of the Income Tax Act, 1961.

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Court's answer

The factual matrix and question of law in the present appeal are identical to those in ITTA No.167 of 2012 and batch matters; the present appeal is squarely covered by the common judgment dated 21.05.2025 rendered by this Division Bench, and the reasons therein apply equally to the present appeal.

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Ratio / Principle

By the said common judgment dated 21.05.2025, while allowing the appeals (including ITTA No.230 of 2016 of the very same assessee), this Division Bench had endorsed the view of the Division Bench of the High Court of Gujarat in Commissioner of Income Tax vs. Amaltas Associates.

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Key takeaways

The appeal is allowed and the question of law stands answered in favour of the assessee and against the respondent, with no order as to costs.ratio¶53

Detailed headnote1 paragraphs

ITTA No.19 of 2021, High Court for the State of Telangana at Hyderabad (Division Bench: P. Sam Koshy and Suddala Chalapathi Rao, JJ.; judgment per P. Sam Koshy, J.), decided 06.01.2026 - M/s. Modi Shelters Pvt. Ltd. v. Dy. Commissioner of Income Tax, Circle-16(1) - Appeal under Section 260A of the Income Tax Act, 1961 against ITAT, Hyderabad 'B' Bench order dated 28.09.2020 in ITA No.1292/Hyd/2016 (AY 2012-13), arising from CIT(A) order dated 18.07.2016 - Question of law: whether a terrace/balcony in the form of open-to-sky area or a portico/porch area without walls could be included in computing built-up area for determining eligibility for deduction under Section 80-IB - Held: appeal squarely covered by this Division Bench's common judgment dated 21.05.2025 in ITTA No.167 of 2012 and batch matters, whereby the Bench had endorsed the Gujarat High Court's view in Commissioner of Income Tax vs. Amaltas Associates (2016 SCC Online Guj 4685) - Appeal allowed; question of law answered in favour of the assessee and against the respondent; no order as to costs; pending miscellaneous applications closed.

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IN THE HIGH COURT^{FOR THE STATE OF TEI.ANGANA} AT HYDERABAD

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TUESDAY,THE SIXTH DAY OF JANUARY TWO THOUSAND AND^TWENTYSIX

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PRESENT

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THE HONOURABLE SRI JUSTICE P.SAM^KOSHY AND

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THE HONOURABLE SRI JUSTICE SUDDALA^{CHALAPATH!RAO}

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INCOME TAX TRIBUN AL APPEAL NO: 19 OF²⁰²¹

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(lncome Tax Tribunal Appeal under Section 260 A of the lncome^{Tax Act.,} 1961 against the order made in 1.T.A.No.1292/Hydl2O16^{for the Assessment year} 2012-13 Dated 28.09.2020 on the file of the lncome^{Tax AppellateTribunal,} Hyderabad '8" Bench, Hyderabad^prefened against^{the Order of the Commissioner} of lncome Tax in Appeal No.01S7/DC|T, Cir.16(1/15-16lclT(A):4lHydl2016-17^Date 18.07.2016 preferred against the Order of the^{Dy.Commissioner of lncome Tax,} Hyderabad made in PAN/GIR No.AADCM83SSN^{Dated 31.03.2015.}

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Between:

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M/s. Modi Shetters Pvt Ltd., A company^{incorporated underthe CompaniesAct,} 1956, having its registered offic,e at 8-2-12Ol76lNBl16,^{17,18,4th Floor, Ashoka} Hitech Chambers, Road No.2, Banjara Hills,^{Hyderabad-34 Representedby its} Managing Director Mr. Sourabh Modi,^Ryo. Hyderabad.

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...A''ELLANT

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AND

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Dy. Commissioner of lncome Tax, Circle^{-16(1),1st floor, Block-B, l.T Tower, Masab} Tank' HYderabad'

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...RESP.NDENT

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lA NO: t OF 2021

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Petition under Section 151 CPC^{prayingthat in the circumstances stated} in the affidavit filed in support of the^{petition,the High Courtmaybe pleasedto} pass an order staying the collection of the disputed demand ot^{Rs. 41} ,O2'42O1-ⁱⁿ the appeal for the assessment^{year 2012-13filedagainst the order passedby} th€ lncome Tax Appellate Tribunal,^{Hyderabad BBench in ITA No.} 1 2921 Hydl 20 1 6 dated 28-09-2020

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Counsel for the Appellant : Ms.K.PRABHAVATHI,^REP.

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M/S. R.S. ASSOCTATES

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Counsel for the Respondents^{: SRI K. SUDHAKAR REDDY}

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(Sr SC FOR INCOME TAX)

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The Court made the following:^JUDGMENT

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IN THE HIGH COURT FOR THE STATE OF'TT I,ANGANA AT

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HYDERABAD

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HONOURABLE SRIIUSTICE P.SAM I OSHY AND HON'BLE SRI JUSTICE SUDDALA CHAL,q PATHI RAO

ITTA NO.19 OF 2O2L

DATE:06.01.2026

Between:

M/s. Modi Shelters I'vt. Ltd.,

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a Company incorporated under the Companies Act, 1956, having its Regd.Office at8-2-720/76/ A/B/1( 17,78, 4d'Floor, Ashoka Hitech Chambers, Road No.2, Banjara Hills, Hyderabad, rep.by its Managing Director.

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Appellant

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and

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Dy.Co mm issit>ner of Income^'fax,

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Circte-16(1), 1.t Floor, Block-B, IT Tower,

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Masab Tank, I{yderabad.

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Responclent

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IUDGMENT:^{(per llon'bleSri} lustice^{P.Sam Koslr,)}

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

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and Mr. K.Sudhakar Reddy, learned Senior Standi:r ; Counsel for the Income Tax Department for the sole respondent.

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The question of law involved in the instant ;1 rpeal is, whether

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the terrace/balcon1, that is in the form of open t: sk1, or portico/

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porch area rt ithout walls could be intludt_-d i- computing the

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(

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

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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 Appeal is the present one, stood decided by this Division Bench zride conunon 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 Associatesl.

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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 sguarely 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.

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1 2016 SCC Online Guj 4685