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2017 (10) TMI 1285 - AT - Income TaxClaim of deduction u/s. 80IB(10) - Held that:- It is a well settled principle of law that when the language of a statute is clear and unambiguous, the courts are to interpret the same in its literal sense. A perusal of discussions discussed above indicates that two diagonally opposite views have been taken by the different Hon’ ble High Courts while interpreting the provisions of section 139(1) and 139(4) read with section 80AC. The Hon’ble High Court of Andhra Pradesh liberally interpreting the provisions of section 80AC has granted relief of deduction by extending the time specified for filing return of income u/s 139(1) to time limit specified under sub-section (4) of section 139. On the other hand, Hon’ble Calcutta High Court and Hon’ble Uttrakhand High Court by literal interpreting the provisions of section 80AC has restricted benefit of deduction u/s. 80IB where return of income has been filed within the time specified u/s. 139(1) of the Act. It is a trait law that where two divergent views are available and there is no direct decisions on the issue by Hon’ble Jurisdictional High Court, the view in favour of assessee has to be followed [CIT Vs. Vegetables Products (1973 (1) TMI 1 - SUPREME Court). Thus assessee is eligible for claiming deduction u/s. 80IB(10) of the Act. Whether four residential units i.e. D-601, D-602, E-601 & E-602 in the housing project, “Hill View” developed by assessee have built up area beyond 1500 sq.ft and hence, ineligible for claiming deduction u/s. 80IB(10)? - Held that:- A perusal of the building plan at page No. 236 of the paper book shows that open area mentioned adjoining to the living room and bedroom is ‘terrace’ and not ‘balcony’. The open area which has been included while computing ‘built up area’ of flat is terrace and not balcony. The definition of ‘built up area’ does not include terrace and in the case of CIT Vs. Amaltas Associates (2016 (10) TMI 359 - GUJARAT HIGH COURT) has held that terrace is different from balcony. Thus, open area of terrace would not form part of built up area of flats in question. Accordingly, second issue i.e. Ground no. 1.b. raised in the appeal is decided in favour of the assessee.
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