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2014 (11) TMI 486 - AT - Income TaxAscertainment of base year – Held that:- Out of 456 units the approval granted for 222 units of plots and 234 units of residential units from Vadodara Mahanagar Seva Sadan - assessee contended that the assessee has made claim with regard to residential units only and not with regard to the plots - CIT(A) followed the decision in Commissioner of Income-tax – IV Versus Tarnetar Corporation [2012 (10) TMI 803 - GUJARAT HIGH COURT] 0 wherein it has been held that the assessee had not only completed the construction two years before the final date but had applied for the building use permission - Such building permission was not rejected on the ground that construction was not completed but on some other technical ground - the assessee had completed the construction and applied for the issuance of completion certificate - the order of the CIT(A) is upheld – Decided against revenue. Allowability of deduction u/s 80IB(10) – proportionate disallowance on the completed units of the project – Held that:- The application for certificates was made on 09.05.2007, i.e. before the due date of 31.03.2008 - only 3 units out of total 223 approved by the BMC remained incomplete on which deduction u/s.80IB(10) will not be available - CIT(A) has followed the judgement of The Commissioner of Income Tax Business Ward XV(3), Chennai. Versus M/s. Sanghvi and Doshi Enterprise [2012 (12) TMI 84 - MADRAS HIGH COURT] – Decided against revenue. Deduction on unutilized FSI units – Held that:- In The Commissioner of Income Tax-I Versus Moon Star Developers [2014 (4) TMI 1042 - GUJARAT HIGH COURT] it has been held that Marginal underutilization of FSI certainly cannot be a ground for rejecting the claim u/s 80IB(10) of the Act - Even if there has been considerable underutilization, if the assessee can point out any special grounds why the FSI could not be fully utilized, the case may stand on a different footing - in cases where the utilization of FSI is way short of the permissible area of construction, looking to the scheme of section 80IB(10) of the Act and the purpose of granting deduction on the income from development of housing projects envisaged, bifurcation of profits arising out of such activity and that arising out of the net sell of FSI must be resorted to – thus, the matter is remitted back to the file of AO to verify the unutilization of FSI and decide this issue afresh in the light of the judgement as mentioned – Decided in favour of assessee.
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