INCOME TAX ACT 1961

Section 80-IB(10)

Deduction under section 80-IB(10) - Income from developing and building housing project - Allowability - Built-up area for residential units more than 1500 sq.ft.

Assessee claimed deduction under section 80-IB(10) in respect of five housing projects, for which it had purchased land. AO denied deduction claimed on the ground that the layout plan for residential units, was of built-up areas of 2199 sq.ft. which exceeded the prescribed built-up area of 1500 sq. ft. as envisaged under section 80-IB(10)(c). Held: Under section 80-IB(10) there is no provision requiring the assessee to obtain a commencement certificate from the local authority for development and construction of the residential unit having more than 1500 sq. ft. area. Therefore, whether such development permission included the area for the residential units, which were more than 1500 sq.ft. would not be relevant for deciding the eligibility for deduction under section 80-IB(10). In view of the concurrent findings of fact arrived at by CIT(A) and the Tribunal, there was no legal infirmity in their orders allowing the deduction under section 80-IB(10).

REFERRED :

FAVOUR : In assessee's favour

A.Y. : 2010-11

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