CIT v. Vignesh Flat Housing Promotors

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The Tax Publishers2021 TaxPub(DT) 2435 (Mad-HC)

INCOME TAX ACT, 1961

Section 80-IB

Following the decision of the Coordinate Bench of High Court, in (2017) 79 Taxmann.com 397 (Mad) : 2016 TaxPub(DT) 1501 (Mad-HC) [CIT v. Elegant Estates], wherein it was held that assessee would be entitled for deduction under section 80-IB(10) with respect to income from flats measuring less than 1500 sq. ft. limit. Hence, contentions raised by Revenue could not be countenanced.

Deduction under section 80-IB - Eligibility - Proportionate deduction under section 80-IB(10) with respect to units less than 1500 sq.ft. -

Issue arose for consideration as to whether Tribunal was right in holding that proportionate deduction had to be allowed to assessee under section 80-IB(10) with respect to the units less than 1500 sq.ft. where the housing project contains units with built-up area exceeding 1500 sq.ft. Held: Following the decision of the Coordinate Bench of High Court, in [2017] 79 Taxmann.com 397 (Mad) : 2016 TaxPub(DT) 1501 (Mad-HC) [CIT v. Elegant Estates], wherein it was held that assessee would be entitled for deduction under section 80-IB(10) with respect to income from flats measuring less than 1500 sq. ft. limit. Hence, contentions raised by Revenue could not be countenanced and accordingly appeal was dismissed.

Followed:CIT v. Elegant Estates [2017] 79 Taxmann.com 397 (Mad-HC) : 2016 TaxPub(DT) 1501 (Mad-HC), CIT v. Arun Excello Foundations (P.) Ltd. (2013) 212 Taxman 342 (Mad) : (2013) 29 taxmann.com 149 (Mad) : 2013 TaxPub(DT) 373 (Mad-HC) and Asstt. CIT v. Vignesh Flat Housing Promoters [I.T.A. No. 437/Mds/2011, dt. 11-4-2013].

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2007-08

IN THE MADRAS HIGH COURT