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2011 (3) TMI 206 - AT - Income TaxDeduction u/s 80-IB(10) - Scrutiny - there is no dispute about the fact that size of the original plot on which housing project was developed was less than one acre, the assessee was subsequently allotted an adjacent plot which made good this deficiency so far as requirement about minimum size of plot was concerned - It is important to bear in mind that it is area of the plot, and not built up area, which is relevant for the purpose of deciding eligibility of the project - It is, therefore, not correct to proceed on the basis that areas not used for construction, such as garden and roads etc., will not be included in the area of the project - When lease agreement is one, plots 8A and 8B are adjacent plots and a cohesive unit on which project is now situated, declining deduction under section 80-IB(10) on the ground that plot 8B is a distinct plot is neither factually correct nor sustainable in law What is material is that at the point of time when matter comes up for examination of the claim, the necessary preconditions for being eligible to the claim are satisfied - Whether the Special Bench of the Tribunal was justified in holding that the projects having commercial area upto 10 per cent of the built-up area of the plot are eligible for deduction section 80-IB(10) on the entire project upto 1-4-2005 - The deduction was declined on the ground that the project was not a housing project and because some of the flats, after including the balcony area, exceed the requisite size of one thousand square feet - Decided in the favour of the assessee
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