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2012 (11) TMI 466 - AT - Income TaxDeduction u/s. 80IB(10) - denial of claim as the assessee is not a developer and only carried on the work of contractor and build the residential complex - Held that:- the assessee has been engaged as a builder and not as a contractor. In the present case, the assessee having right to 60% in the constructed area and also a share in the undivided property, cannot be called a mere contractor. Thus the claim of deduction u/s. 80IB(10) is to be granted to the assessee to the extent of its share and there cannot be double deduction - in favour of assessee. Non production of completion certificate - Held that:- Intention would only have been that for the project as a whole, there should be certification from the relevant authority proving the commencement and completion, and not that a completion certificate should be there in every year of the project span. Thus, the Assessing Officer need not insist on the completion certificate in this assessment year, this is the right meaning of the statute - in favour of assessee. Calculation of built up area - AO included the proportionate share of common area in the size of each flat - Held that:- The Finance Act (No. 2) of 2004 inserted the definition of "built up area" to clarify this position, thus finding merit in the contention of the assessee that the proportionate common area should be excluded from the calculation or flat size - in favour of assessee. NIL deduction v/s full deduction v/s proportionate deduction u/s 80IB - Held that:- The assessee is eligible for deduction u/s. 80IB in respect of those flats whose size is within the prescribed limits - in favour of assessee. Work-in-progress related to Maredpally Project credited to the Profit and Loss A/c - Held that:- he Assessing Officer may be directed not to reduce the eligible deduction u/s. 80IB by taking into account the work-in-progress relating to Maredpally site since the quantification of the work-in-progress has not affected the deduction claimed by the assessee u/s. 80IB(10). As the CIT(A) not adjudicated this ground, this issue is remitted back to the file of the CIT(A) for fresh adjudication - in favour of assessee for statistical purposes. Chit dividend, scrap sales and discount on materials are to be considered as income from business eligible for deduction u/s. 80IB(10) as decided in CIT v. Kovur Textiles & Co. [1980 (1) TMI 8 - ANDHRA PRADESH HIGH COURT ]. However, the other income i.e., rent on vacant flat, interest on deposit cannot be considered as income from business and the same has to be considered as income from house property/income from other sources, respectively - partly in favour of assessee.
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