Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2010 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2010 (6) TMI 597 - AT - Income TaxDeduction u/s 80-IB(10) - The first objection of the Assessing Officer in denying the exemption under section 80-IB(10) is sale of land by the assessee before the start of the project and consequently lesser area available with the assessee than the area, which were submitted for approval of the project - The basic condition for availing exemption under section 80-IB(10) of the Act is approval of the project as housing project by the prescribed authority on a plot of area of more than 1 acre - Held that: Assessing Officer and CIT(A) have failed to consider the same in the right perspective - After the town planning scheme was approved for development of 8.7 acres, assessee sold plot area of 3 acres, which is permissible under law, as clarified by the Executive Officer, Municipal Council, Zirakpuar Regarding commercial area - Assessee claims that (a) no commercial unit was sold during the year; (b) some commercial plots were sold by assessee, on which no deduction under section 80-IB(10) was claimed and (c) it had developed only a office block in the project - In case plea of the assessee is found to be correct that no such deduction is claimed on the commercial area, then there is no merit in the disallowance on this count Regarding covered area of each unit was found to be in excess of 1500 sq. feet as per the report of DVO - assessee admits that the DVO had visited their premises but strongly objects to the reference made to DVO and the findings of DVO - Held that: assessee has been denied opportunity of hearing and meeting the objections raised by DVO. The Assessing Officer/DVO have failed to give proper opportunity of hearing to the assessee - Appeal is partly allowed
|