2012 (4) TMI 54 - BOMBAY HIGH COURT

Deduction u/s 80IB - Housing projects – assessee constructed buildings A, B, C and D and did not claimed deduction on ground of approval being granted prior to 01.10.1998 – approval for additional 'E' building received on 11.10.2002 - Revenue contended that 'E' building being continuation of A, B, C and D buildings, the project must be held to have commenced prior to 1st October 1998 hence no deduction – deduction also denied on ground of area of plot and size of the flats – Held that:- Construction of 'E' building constitutes an independent housing project and, therefore, the date on which the earlier housing project had commenced construction could not be applied to the housing project consisting of 'E' building merely because the conditions set out while granting approval to the earlier housing project have also been made applicable to the housing project in question.

In present case, total area of plot for 5 buildings is 2.36 acres – Revenue contending proportionate vacant area for E building would be less than one acre – Held that:- Section 80IB(10) does not suggest that the plot of land must be vacant. Deduction is available on construction of a housing project on a plot having area of one acre, irrespective of the fact that there exist other housing projects or not.

Further, as contended by Revenue that two flats were merged and size of flat exceeded 1000 sq ft – It is found that there was no merger of flats. Therefore, Tribunal rightly allowed deduction u/s 80IB – Decided in favor of assessee.