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2018 (6) TMI 1581 - AT - Income TaxDeduction 80IB(10) - claim allowable for the profits of the project as a whole OR part of the project on a prorata basis - concept of proportionate deduction u/s.80IB(10) for the completed building or block of the project - whether Section 80IB(10)(a) stipulates the condition for the project as a whole and not individual units or flats of buildings? - CIT-A allowed proportionate claim - HELD THAT:- CIT(A) has rightly allowed the deduction u/s.80IB(10) to the assessee as it is undisputed fact that the assessee completed construction of 108 flats and obtained completion certificate for the same. As per the Valuation Officer’s report, the assessee has complied with the conditions provided in section 80IB(10) and AO ignored the same and failed to comment on the eligibility of section 80IB(10) of the Act. AO failed to appreciate the judgment of jurisdictional High Court in the case of CIT Vs. Brahma Associates (2011 (2) TMI 373 - BOMBAY HIGH COURT ) in the right perspective and chose to reproduce part of the judgment to his convenience to deny the claim of the assessee. It is a settled legal proposition that the claim of deduction is allowable on pro-rata basis qua the complete part of the project. Considering the above, we are of the opinion that the assessee is entitled to pro-rata deduction u/s.80IB(10) of the Act for the buildings B, C and D. We therefore, uphold the order of CIT(A). The grounds raised by the Revenue are dismissed.
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