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2014 (8) TMI 1040 - AT - Income TaxDeduction u/s.80IB(10) - as per AO the built up area of 2 row houses 1 & 7 are more than 1500 sq.ft. each - Held that:- CIT(A) has held that the size of the project comprise of 63 units only which included 56 flats and 7 row houses which could quality for the claim of deduction u/s.80IB(10) and not 65 units as held by the Assessing Officer (para 3.6 of the order). Similarly, he has held that the area of the 2 units, i.e. 1 & 7 are less than 1500 sq.ft. after excluding terrace, balcony and projections etc., and therefore the 2 units fulfil conditions prescribed u/s.80IB(10)(14)(a) of the I.T. Act. The above observations of the Ld.CIT(A) are not challenged by the Revenue and therefore it has attained finality and therefore we are not concerned with the above objections of the Assessing Officer. The approval for the project was given by the Development Authority on March 16, 2005. Clearly the approval related to the period prior to 2005, i.e., before the amendment, which insisted on issuance of the completion certificate by the end of the four-year period, was brought into force. The application of such stringent conditions, which are left to an independent body such as the local authority who is to issue the completion certificate, would have led to not only hardship but absurdity. As a consequence, the Tribunal was not, therefore, in error of law while holding in favour of the assessee. Since the date of the commencement of the project in the instant case is admittedly 16-07-2002 as held by the Assessing Officer as well as the CIT(A), therefore, it has to be held that amendment w.e.f. 01- 04-2005 requiring certificate of completion of project within 4 years of approval is not applicable to the projects approved prior to that date and therefore the assessee is entitled to deduction u/s.80IB(10) of the I.T .Act. - Decided in favour of assessee
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