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2011 (8) TMI 680 - AT - Income TaxExpenditure in respect of exempt income 14A - AO applied Rule 8D - Assessee contended no interest expenditure was incurred by the assessee in relation to earning of tax free income - Held That:- In view of Godrej & Boyce Mfg. (2010 -TMI - 78448 - BOMBAY HIGH COURT), case remanded back. Deduction under 80IB - two flats exceeds 1000 sq.ft area - Held that:- In view of CIT v. Ambuja Housing Development Ltd, Work out the deduction u/s 80IB(10) after excluding the profit from the sale of these two flats. Deduction under 80IB - "commenced or commences development and construction of housing project" is separate and distinct from the "approval of the housing project" - Held That:- No restriction for approval before 1.10.98 however the commenced development and construction on or after 1.10.98. when the assessee had commenced the development after 1st day of Oct 1998 and completed the same before the specified date, he is eligible for deduction. Subsequent use of the flats for non-residential purpose would not be considered as construction of commercial establishment by the assessee in the housing project and therefore, deduction u/s 80IB(10) cannot be declined because of these reasons. commercial area 2638 sq.ft. being less than 10% of the total built-up area of 71,56 sq.ft, the assessee is entitled to deduction/s 80IB - Held That:- In view of Brahma Associatess (2011 -TMI - 205564 - BOMBAY HIGH COURT) decided in favour of assessee and is eligible for deduction.
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