The Tax Publishers2021 TaxPub(DT) 0519 (Karn-HC) : (2021) 431 ITR 0241

INCOME TAX ACT, 1961

Section 80-IB(10)

Clause (c) of section 80-IB(10) does not exclude the principle of proportionality in any manner, therefore, CIT (A) was justified in holding that the assessee would be entitled to benefit of deduction under section 80-IB(10) proportionately in respect of residential units having built-up area of less than or equal to 1,500 square feet.

Deduction under section 80-IB - Allowability - Some residential flats of housing project having built-up area of more than 1,500 square feet -

Assessee-firm was engaged in development of real estate and construction of apartments. It claimed deduction under section 801B(10). AO rejected the said claim on the ground that the built up area of 26 flats exceeded 1,500 square feet. However, CIT(A) granted such deduction under section 801B(10) to the assessee on proportionate basis. Revenue contended that provisions of section 801B(10) do not envisage deduction on proportionate basis. Held: Clause (c) of section 80-IB(10) does not exclude the principle of proportionality in any manner, therefore, the assessee was entitled to benefit of deduction under section 80-IB(10) proportionately in respect of residential units having built-up area of less than or equal to 1,500 square feet.

Followed:CIT v. Brigade Enterprises Ltd.(2020) 120 Taxmann.com 346 (Karn-HC) : 2020 TaxPub(DT) 3885 (Karn-HC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2009-10


INCOME TAX ACT, 1961

Section 145A

SUBSCRIBE TaxPublishers.inSUBSCRIBE FOR FULL CONTENT