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2015 (8) TMI 1367 - AT - Income TaxDeduction u/s. 80IB(10) - reason for disallowing deduction on the said project is that the size of plot is less than 1 acre - Held that:- Respectfully following the decision in the case of M/s. B.K. Pate Enterprises Vs. ACIT (2009 (5) TMI 566 - ITAT PUNE-A) we hold that the reduction in size of plot on account of area earmarked for D.P. Road would not make the assessee in eligible for the claim of deduction u/s. 80IB(10) of the Act. Entire project was not completed within the specified time limit - Held that:- As per the provisions of section 80IB(10)(a)(ii), the housing project should be completed within 4 years from the end of the financial year in which the housing project is approved i.e. by 31-03-2009. Originally, project was approved for 30 flats. Subsequently, 6 more flats were added vide revised layout plan. Undisputedly, 30 flats (10 flats in building A and 20 flats in building B), were completed within the stipulated time limit of 4 years and completion certificate in respect of those 30 flats were received by the assessee from PMC on 08-05-2008. In respect of remaining 6 flats i.e. 2 flats in building A and 4 flats in building B, the completion certificate was obtained by the assessee from PMC on 09-08-2011 i.e. after the expiry of 4 years from the end of financial year in which the housing project was originally approved. It has been repeatedly held by various Hon'ble High Courts and the Tribunal, that where the part of the project has been completed and all the conditions as laid down u/s. 80IB(10) have been complied with, the assessee is eligible to claim deduction u/s. 80IB(10) on the completed part of project on pro-rata basis. Thus we hold that the assessee is eligible to claim deduction on 30 flats on proportionate basis. See Commissioner of Income Tax Chennai Versus M/s. Arun Excello Foundations Pvt. Ltd [2012 (12) TMI 415 - MADRAS HIGH COURT ]
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