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2014 (1) TMI 1299 - AT - Income TaxDisallowance of deduction u/s 80IB of the Act - Profit from the sale of developed plots – requirements of Section 80IB not fulfilled – Held that:- The assessee has got approval for development of housing project – though, during the year, the assessee has just undertaken development of plots and their sales, no construction activity was undertaken in respect of residential units proposed on such plots - Deduction u/s 80IB(10) specifically provides for deduction in respect of profit earned on development and construction of housing projects on or after 1st day of October, 1998 - Deduction u/s 80IB(10) is subject to condition of undertaking, development and building of housing project - Thus, the construction and development of housing projects is sine qua non for claim of deduction u/s 80IB(10) subject to fulfilment of other conditions - the assessee has just developed the plots and sold them - No construction activity was undertaken during the year - Thus, the assessee is not eligible for claim of deduction in respect of profit earned on sale of developed plot insofar as there was no profit on sale of residential units – Decided against Assessee.
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