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2014 (1) TMI 1830 - AT - Income TaxDeduction u/s.80IB - income computed from the business of an undertaking developing and building a housing project - land and approval is not in assessee’s name and construction is not as per approved plan - CIT-A allowed the claim - Held that:- We are fortified with the decision of Hon’ble Madras High Court in the case of Viswas Promoters Pvt.Ltd. vs. ACIT (2012 (11) TMI 1117 - MADRAS HIGH COURT), wherein under the identical facts held that the assessee is entitled to succeed both on the principle of proportionality as well as by reason of the construction on the meaning of the expression “housing project” as referring to construction of any building and the wordings in Section 80IB(10) - mere fact that one of the blocks have units exceeding built-up area of 1500 sq.ft., per se, would not result in nullifying the requirement under section 80IB(10)(c) of the Act. Therefore, respectfully following the ratio laid down in the case of Viswas Promoters Pvt.Ltd. vs. ACIT(supra) coupled with the fact that the ld.CITR(A) has given a detailed finding on fact that meets all the objections of the Assessing Officer. Thus, these grounds of Revenue’s appeal are dismissed. TDS u/s 194C - amount paid to M/s.Parmar Builders for construction of ‘B & C’ building without deducting TDS - disallowance of expenditure u/s.40(a)(ia) - Held that:- CIT(A) has allowed this ground by observing that additional disallowance made do not loose the characteristic of being derived from the housing project developed by an undertaking as its original source. Therefore, even if the expenditure is disallowed, the same is entitled for deduction u/s.80IB of the Act on the income computed from the business of an undertaking developing and building a housing Project. Since the Revenue could not controvert this finding of the ld.CIT(A), therefore we hereby upheld the order of the ld.CIT(A) and reject this ground of Revenue’s appeal.
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