Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2010 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2010 (4) TMI 838 - AT - Income TaxDeduction under section 80-IB(10) denied - Project was not exclusively for units with built-up area less than 1500 sq. ft. - Certificate from the Village Administrative Officer (VAO) could not be accepted since the Village Administrative Officer was not the authority to issue approval for housing proposal - Held that:- As the individual owners to whom plots were given had obtained sanction for constructing the units, and constructions carried out by the assessee. The approved layout shows the bifurcation of the site to various plots, areas earmarked for shops and houses. All these would lead to an irresistible conclusion that the project had the approval of a local authority, and each individual house were only part of a whole. The deduction under section 80-IB(10) is provided as an incentive and motivation for construction of the housing project so as to make the maximum residential houses available for the general public. The built-up area restriction is provided under the provision to achieve the object of houses available within the financial capacity of the general public at affordable prices. Therefore, if the units having built-up area of more than 1500 sq. ft. are excluded from the project, the remaining project still fulfils the objects of the legislature and thus entitles for the claim under section 80-IB(10) on proportionate basis as all other conditions prescribed under the provision are satisfied. Thus assessee was eligible for claiming deduction under section 80-IB(10), pro rata for the housing units having less than 1500 sq. ft. for both the year.
|