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2017 (1) TMI 1403 - AT - Income TaxClaim of deduction under section u/s 80IB(10) - Held that:- Where the allotment of flats has been made prior to 1.4.2009, the assessee shall be eligible to claim the tax deduction in respect of such flats even if there is violation of clause (e) & (f) of section 80IB(10) of the Act. However, where the allotments of flats have been made after 1.4.2009, the assessee will necessarily be required to demonstrate the satisfaction of clauses (e) and (f) of section 80IB(10) of the Act. On perusal of assessment order, it is noted that complete details of allotees were not furnished before the AO and the AO based on limited information provided by the assessee, has identified certain cases where violation of above said conditions have been noted. The assessee has responded to these limited cases and even ld CIT(A) has upheld the contention of the assessee that the allotment has either not being made or booking of flats has happened prior to insertion of clause (f) of section 80IB(10) of the Act in these limited cases. The legislature has used the expression “allotment” and not the expression “booking” of the residential unit which precede the allotment of residential unit as generally understood in the housing sector. Unless, in a given case, where the booking and allotment are same as demonstrated through the contractual understanding between the builder and the allottee of the residential unit, it would not be correct to use these terms inter-changeably. In light of above directions, we accordingly set-aside the matter to the file of the AO to examine the allotment of flats made by the assessee in entirety and examine the satisfaction of conditions under clause (e) and clause (f) of section 80IB(10) of the Act. Validity of assessment framed u/s 147 - Held that:- It is noted that the assessment was reopened within the period of 4 years basis the completion of assessment for AY 2010-11 where the assessee’s claim under section 80IB(10) was disallowed. The assessee was provided copy of reasons recorded for reopening and after disposing off the assessee’s objections, the impunged reassessment order has been passed by the AO. The ld CIT(A) has upheld that the AO has sufficient material evidence/information prior to issuance of notice under section 148 and relying upon the decision of the Hon’ble Supreme Court decision in case of Raymond Woollen Mills [1997 (12) TMI 12 - SUPREME Court ], has upheld the action of AO in reopening of assessment u/s 147 of the Act.
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