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2006 (7) TMI 534 - AT - Income TaxDeductions u/s 80-IB(10) - Profits from business of Developing and Construction of houses - measurement of distance of 25 kms. from Mumbai city and the six residential units of more than 1,000 sq. ft. built-up area constructed - whether the building project of the assessee at village is a "housing project" - HELD THAT:- The fact that the assessee’s site fall under the residential zone, is not decisive of the issue. In view of the above findings, it is clear that the provisions of section 80-IB(10) of the Income-tax Act is not applicable to the facts of the case of the assessee for the relevant year as the building project of the assessee was not a "Housing Project" and accordingly does not qualify for deduction u/s 80-IB(10) of the Act. In view of our finding that the building project of the assessee was not a "Housing Project" and, therefore, the assessee’s case does not qualify for deduction u/s 80-IB(10) of the Act, we hold that all the conditions specified u/s 80-IB(10) are not satisfied by the assessee and accordingly the assessee is not entitled to any deduction u/s 80-IB(10) of the Act on this ground alone. This is a factual issue and in case the road way distance from the outer limits of Municipal Corporation of BMC is more than 25 kms. from the assessee’s site, the assessee’s construction of six residential units of built-up area of more than 1,000 sq. ft. (less than 1,500 sq. ft.), shall not be violative of condition mentioned in section 80-IB(10)(c) of the Act, subject to verification in this regard. As we have already held that since the assessee’s building project is not a "Housing Project" within the meaning of section 80-IB(10) of the Act and, therefore, the assessee is not entitled to any exemption claimed u/s 80-IB(10) of the Act, the above discussion regarding the measurement of 25 kms. distance from the assessee’s site to the limits of Mumbai city is of academic interest only. Accordingly, the issue in the present appeal before us is decided in favour of the Revenue and the grounds of appeal of the assessee are dismissed. In the result, the appeal of the assessee is dismissed.
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