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2010 (9) TMI 677 - AT - Income TaxDeduction u/s 80IB(10) - Referring to the Circular issued by the CBDT, copy of which is available at page 85 of the paper book in Instruction No.4 dated 30.6.2009, the learned representative submitted that the assessee can claim deduction on year to year basis, where the assessee is showing profit from partial completion of the project for every year - No doubt the assessee acquired large extent of land for the purpose of executing a housing project u/s 80IB(10) of the Income-tax Act provides for deduction in respect of housing project - As rightly claimed by the learned representative for the assessee, assessee can claim deduction under SECTION80IB on year to year basis, in view of the Circular of the CBDT dated 30.6.2009, even though the assessee proposes to construct on the entire extent of land and paid the development charges, and in as much as the assessee completed the project in respect of one block, in our opinion, the assessee is eligible for deduction under SECTION80IB(10) of the Act - Decided in the favour of the assessee The contention of the assessee is that Accounting Standard 7 is not applicable and therefore, the deduction shall be given on the entire amount - In case the assessee has not earned any profit, the question of grant of deduction under SECTION80IB(10) does not arise for consideration - If any profit is not included in the total income, then the deduction u/section 80IB(10) does not arise for consideration - Tribunal after considering the provisions of SECTION145 of the Act and Accounting Standard- 7 found that profit has to be ascertained year after year and in respect of the construction business - Accordingly, the same is confirmed and the grounds of the assessee in this appeal are rejected
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