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2018 (8) TMI 1828 - AT - Income TaxEligibility for deduction u/s. 80IB(10) - as per DR assessee fails to fulfill the certain basic conditions that it has owned the land and the units constructed by it are within the limit prescribed as per the provisions of s. 80IB(10) - HELD THAT:- The assessee build and develop housing project under agreement dated 18.01.2005 and became owner of the said land on 31.03.2008 when the sale deed executed in favour of the assessee. At this juncture, the ratio of the order of Radhe Developers vs. ITO [2007 (6) TMI 316 - ITAT AHMEDABAD] it was held that to claim deduction u/s. 80IB(10) of the Act there is no condition precedent that the assessee must be the owner of the land on which housing project is to be constructed and hence, contention of the AO in this regard is not sustainable and ld. CIT(A) was right in dismiss the same. Entire housing project is to be treated as single unit - In the present case, undisputedly the assessee has maintained separate accounts for flats and row houses and no claim has been made on the row houses measuring area of more than 1500 sq.ft. and the claim u/s. 80IB(10) has been made only on the flats which are measuring less than 1500 sq.ft. this fact is clearly discernable with the computation of income filing along with return of income wherein net profit as per P&L a/c. on flat sale amounting to ₹ 2,68,88,714/- has been shown and amount of ₹ 2,65,52,967/- has been claimed as deduction u/s. 80IB(10) of the Act. Thus, in view of decision of case of Vishwas Promoters [2012 (11) TMI 1117 - MADRAS HIGH COURT] claim of the assessee, on the flats which fulfill the conditions laid down provision of u/s. 80IB(10) of the Act is allowable and the CIT(A) was right in allowing the same. Entire housing project has to be treated as single unit - As in the case of Vishwas Promoters (supra) Hon'ble High Court of Madras also made it clear that each residential block in a housing project is a ‘housing project’ in itself for purpose of claiming deduction u/s. 80IB(10) of the Act. Therefore, this contention of the AO is also not correct and sustainable and the first appellate authority was right in dismissing the same Thus we reach to a logical conclusion that the AO disallowed the claim by taking a hyper technical approach and on his own whims and surmises which is clearly by the scheme and mandate of provision of u/s. 80IB(10) - No valid reason to interfere with the findings arrived by the ld. CIT(A) in dismissing the allegations and contentions of the AO and in allowing deduction u/s. 80IB(10) of the Act to the assessee on the amount accrued to him on sale of flats measuring less than 1500 sq.ft. per unit. - Decided in favour of assessee.
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