TMI Blog2012 (4) TMI 681X X X X Extracts X X X X X X X X Extracts X X X X ..... less than one acre. 2. Facts of the case in brief are that the assessee is a firm engaged in the business of construction of residential buildings and development of land. During the impugned assessment year, the assessee firm has developed 100% residential units at Survey No.15/3/1B/1/2, Kondhawa, Pune. The name of the housing project was Gulmohar Horizon . During the course of assessment proceedings the AO noted that in the form no. 10CCB the size of the plot was shown at 4125 sq. mtrs. However, as per the commencement certificate no.CC/1136/05 dated 20th June, 2005, the area of the plot was mentioned as 3945 sq. mtrs., which was less than the requisite area of one acre i.e., 4046.86 sq. mtrs. Rejecting the various submissions made b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut area. 4. Since the assessee filed a report from a Government Approved Authority i.e., M/s. Pensioners Land Surveyors Associates, Pune showing the area of the plot at 4,125 sq. mtrs., the Ld. CIT (A) called for a remand report from the AO asking him to give his comments on the contention of the assessee. The AO examined the additional evidence submitted by the assessee and opined that the Pune Municipal Corporation by its certificate dated 26.5.2005 has certified the area of plot at 3,945 sq. mtrs., which is less than one acre. Therefore, the area which needs to be considered in the impugned case should be the one i.e., as approved by the Pune Municipal Corporation only. Even otherwise the area in the plot as per 7/12 extract is 4,000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Income Tax Act. 6. Learned CIT (A) called for the comments of the assessee on the remand report of the AO. The assessee reiterated the same submissions as made earlier. The assessee submitted that the provisions for exemption in the relevant year for granting incentive for promoting growth or development should be construed liberally. The assessee relied upon certain decisions over and above the decisions cited earlier and claimed that it is entitled to deduction u/s 80 IB(10) of the I.T. Act. 7. However, the Learned CIT (A) was not convinced with the arguments advanced by the assessee. He observed that the area statement mentioned in the approved plan as per the commencement certificate no.CC/1136/05 dated 20.06.2005 mentions the ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on merit also he rejected the same in view of the report given by the Pune Municipal Corporation measuring the area of the land at 3945 sq. mtrs. Aggrieved with such order of the Ld. CIT (A) the assessee is in appeal before us. 8. The Learned Counsel for the assessee submitted that the area of the land as per the sale deed is 4000 sq. mtrs. whereas the area as per physical demarcation is 4125 sq. mtrs. He submitted that the certificate issued by the registered architect filed before the AO as well as the Ld. CIT (A) shows the area at 4125 sq. mtrs. Referring to page no.78 of the paper book he submitted that area as per the Triangulation method is 4033 sq. mtrs., Referring to the remand report of the AO wherein Pune Municipal Corporation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it of the plot has to be construed with reference to the area of the site on which the housing project is construed and not with reference to the demarcation of land done by the land development authority. 9. The Learned DR on the other hand strongly supported the order of the AO and the Ld. CIT (A). Referring to provisions of sec. 80-IB(10) she submitted that according to the statute the project has to be approved by the local authority and since the local authority has approved the plan on a plot area of 3945 sq. mtrs., therefore, the assessee is not entitled to the benefit of deduction as the area of the plot is less than one acre. She submitted that the AO s action starts after the local authority approves the plan and he has to veri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he fresh measurement done by the concerned Revenue Authorities, area of the plot is 4123 sq. mtrs. 11.1. As per provisions u/s. 80 IB(10) among other conditions, project has to be on the size of plot of land which has minimum area of one acre. According to the Audit Report filed in Form No. 10 CCB, assessee has shown size of plot at 4125 sq.mtrs. As per Commencement Certificate No. CC/1136/05 dated 20th June 2005, area of the plot has been mentioned as 3945 sq. mtrs. According to the CIT(A), area of the plot as per 7/12 Extract is 4000 sq. mtrs. However, assessee has filed certain documents as additional evidence at page Nos. 87 to 91 of the paper book, according to which, the concerned revenue authorities have physically measured the si ..... X X X X Extracts X X X X X X X X Extracts X X X X
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