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The Tax PublishersTax Appeal No. 2 of 2016
2020 TaxPub(DT) 5342 (Bom-HC) : (2020) 429 ITR 0605 : (2021) 279 TAXMAN 0247INCOME TAX ACT, 1961
Section 80-IB(10)
The reasoning of Tribunal disallowing claim of deduction under section 80-IB(10) allowed by CIT(A) on pro-rata basis deserves no acceptance as even if the area proportionate to the 5 residential units is excluded, the size of the plot which admeasures 28,014 sq. meters., i.e., almost about 7 Acres or thereabouts, will, in no manner, stand reduced to a minimum area of 1 Acre as required.
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Deduction under section 80-IB(10) - Income from developing and building housing project - Condition precedent satisfied -
Assessee filed appeal against the order of Tribunal disallowing the claim of deductions under section 80-IB(10) allowed by CIT(A) on pro-rata basis in respect of 5 of the residential units in the project, which otherwise comprised of a total of 352 residential units on the ground that said exclusion of the 5 residential units might affect the condition about the size of the plot which is required to have a minimum area of 1 Acre. Held: The reasoning of Tribunal deserves no acceptance. Even if the area proportionate to the 5 residential units is excluded, the size of the plot which admeasures 28,014 sq. meters, i.e. almost about 7 Acres or thereabouts, will, in no manner, stand reduced to below 1 Acre. Therefore, this could not have been a ground to deny pro-rata deduction as was granted by CIT(A) in his Order. Thus, the Order made by Tribunal was set aside to the extent it denies the benefit of pro-rata deductions to the assessee.
REFERRED :
FAVOUR : In favour of assessee.
A.Y. : 2010-11 to 2012-13
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