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2012 (8) TMI 84 - AT - Income TaxDeduction u/s 80IB(10) - housing project - whether ownership of land is necessary - computation of eligible land - held that:- assessee was not required to be owner of land on record. - housing project constitute development plan, roads and grant of other facilities, therefore, those areas should exist within the prescribed limits and to be considered as a part and parcel of the project. There is no dispute in the case before us that after addition of 5 Are of land purchased by the assessee vide agreement dt. 20th March 2004, for the purpose of approach road, to the area given in the lay out plan, it fulfills the 1 Acre prescribed area for eligibility of claiming deduction u/s. 80IB(10) of the Act. Revisionary provision u/s. 263 of the Act - revisional order passed u/s. 263 of the Act for which, the foremost requirement is that the assessment order is erroneous and prejudicial to the interest of revenue alleged that row house having area more than 1500 Sq.ft. Held that:- Each flat was within the prescribed limit of 1500 Sq.ft. area and if after purchasing of 2 flats owner(s) of flats merges it into a larger flat, the claimed deduction to the assessee cannot be denied on this basis - A.O has fully applied his mind before allowing the deduction - assessment order in question can not be held as erroneous and prejudicial to the interest of the revenue - grounds questioning the validity of the revisional order in question are thus allowed in favour of the assessee Disallowance of deduction claimed u/s. 80IB(10) alleged that area of the project is less than 1 acre - explanation of the assessee that another 5 Are of land was purchased subsequently from the same owners which could be included in the calculation of area of the plot - A.O has denied the deduction is the alleged merger of 4 flats deviating from approved plans Held that:- Merger of flats after purchase by the owners thereof to make it into a larger flat for their own convenience will not be a cause for denial of claimed deduction especially when an undisputed fact that each of those flats does not exceed the prescribed area limit 1500 Sq.ft. deduction is allowed - appeal is allowed Disallowance of deduction - authorities below have denied the claimed deduction u/s. 80IB(10) of the Act to the assessee on similar basis that the area of the land is below 1 Acre and the area of row house No. 11C in building D is more than 1500 Sq.ft. Held that:- Addition of further area of 5 Are land purchased by the assessee subsequently for providing road to the Society is fulfilling the 1 Acre area requirement and the area of the row house No. 11C in building D is within the prescribed maximum area limit of 1500 Sq.ft. - A.O directed to allow the claimed deduction u/s. 80 IB(10) to the assessee - in favour of the assessee.
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