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2012 (7) TMI 344 - AT - Income TaxDis allowance of claim of exemption u/s.80-IB(10)- invoking provisions of Sec 263 by DIT - Held that:- Assessee's claim for deduction u/s.80-IB(10) for AY 2009-10 relates to the profit derived from developing housing project, cannot be regarded as income of a charitable trust or institution within the meaning of Sec.11(1)(a) because carrying on of the housing project was not a charitable purpose even in AY 2009-10 in view of the first proviso to Section 2(15) of the Act - the activity of construction of building and sale was in the nature of trade, business, commerce for consideration and therefore the income from the said activity will stand excluded from the provisions of Sec.11 & if Sec.11 is excluded, then the income of the Assessee has to be computed in accordance with the provisions of the Act and therefore the claim of the Assessee for deduction u/s.80-IB(10)has to be allowed - exercise of jurisdiction u/s. 263 by DIT on the ground of lack of inquiry regarding eligibility of the Assessee for deduction u/s.80-IB(10)cannot therefore be upheld - in favour of assessee.
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