Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (1) TMI 480 - AT - Income TaxDeduction u/s 80IB - Works contractor - Whether the assessees are builders/developers and therefore eligible for deduction under section 80-IB(10)? - Held that:- Assessees were builders/developers and therefore eligible for deduction under section 80-IB(10). Even where the purchasers of the flats combined two flats together thereby exceeding the limit of the built-up area of 1500 sq. ft., it could still be considered as proper compliance of the stipulation provided in section 80-IB(10) that the built-up area should not exceed 1500 sq. ft. and therefore, assessees are eligible for deduction under section 80-IB(10). Even though assessees had furnished project completion certificates which are dated before 31st March, 2008, these certificates related back to date on which the applications for such certificates were made by the assessees and therefore, assessees are entitled for deduction under section 80-IB(10). - Decided in favor of assessee. Insofar as the issue whether built-up area of certain flats measuring more than 1500 sq. ft. is concerned, it is restored to the files of the Assessing Officer with a direction to measure a flat in the presence of DVO as well as Registered Valuation Officer appointed by the assessee. Private terrace area should be included in the built-up area of the flats for the purpose of working out statutory extent of the built-up area - Decided against the assessee. Based on majority view, deduction should be allowed to the assessees under section 80-IB(10) in respect of flat having built-up area not exceeding 1500 sq. ft. are not entitled for deduction in respect of these flats having built-up area exceeding 1500 sq. ft. - Decided against the assessee. There need not be any cap of 10 per cent for flats having built-up area exceeding 1500 sq. ft., with regard to a claim for deduction under section 80-IB(10) of the Act - Decision in the case of CIT v. Brahma Associates [2009 (4) TMI 215 - ITAT PUNE] followed. - Decided partly in favor of assessee.
|