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2015 (9) TMI 549 - AT - Income TaxEligibility to claim deduction u/s 80IB(10) - Held that:- Provisions of section 80IB(10) being beneficial in nature, too technical a approach, would defeat the purpose for which provision has been brought into the statute. Moreover, as far as ld. CIT(A)’s observation that the housing project should have been completed by 31/03/2011, we do not find the same to be acceptable. As assessee’s housing project has been approved after 1st April, 2005, the stipulated period within which assessee has to complete the project is five years. Assessee having completed blocks A, B & F within five years from the date of approval, in our view, it is eligible to claim deduction u/s 80IB(10) in respect of blocks A, B & F. Though, in principle, we agree that assessee is eligible to claim deduction u/s 80IB(10) in respect of blocks A, B & F, however, the quantum of deduction has to be verified. As could be seen, assessee has been recognizing revenue from Sadguru Krupa project by following percentage completion method and project of the assessee has started in FY 2007-08. As it appears, assessee in the years under consideration i.e. AYs 2010-11 and 2011-12 has recognized revenue on percentage completion method and has also claimed deduction u/s 80IB(10) on that basis. Therefore, it is very much necessary and essential to verify whether deduction claimed in these two AYs is for the entire project (all six blocks) or only blocks A, B & F. Neither the AO has examined this aspect nor the assessee has brought any material on record to indicate that deduction claimed u/s 80IB(10) for these two years is only in respect of blocks A, B & F. While computing assessee’s claim of deduction u/s 80IB(10), AO has to examine this aspect. With the aforesaid observations, we set aside the impugned orders of ld. CIT(A) and remit the matter back to AO for deciding afresh - Decided in favour of assessee for statistical purposes.
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