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2011 (5) TMI 958 - AT - Income TaxDeduction under section 80-IB(10) - Statements Based on Survey Operations - In the original assessment, the AO declined the assessee’s claim for deduction u/s 80-IB(10) on account of violation of the conditions as specified in the said section - Matter remitted back for allowing deduction - As per Assessee, AO did not verify the area-wise calculation and simply proceeded on the basis of declaration made during the survey proceedings HELD THAT:- AO was required to verify the area-wise calculation done during the course of survey operation. He clearly proceeded to take the declaration made during survey proceedings as gospel truth and did not bother to verify the same. In appeal, the CIT(A) has confirmed this action of the AO, this approach, in our opinion, is a very superficial way of looking at things. Once the CIT(A) in the original quantum proceedings specifically directed the AO that deduction u/s.80IB(10) has to be allowed “subject to verification" it is not open to the AO to proceed to adopt the calculation made during survey operation without further verification. We, therefore, deem it fit and proper to remit the matter back to the file of the AO with specific direction to verify the area-wise calculation of all ineligible flats and allow deduction u/s.80IB(10) on pro-rata basis in respect of flats which are found to be eligible for deduction irrespective whatever statement may have made by the assessee during the survey operation. It is only elementary that the statements made in the course of survey proceedings u/s 133A have no evidentiary value and when the assessee can demonstrate that the statement so made is at variance with actual facts, such statement cannot, by any stretch of logic, be used against the assessee.The area-wise calculation of flat size, which is basis for ascertaining eligible for deduction, needs to be verified and the Assessing officer must do so while giving effect to the order - Matter restored back
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