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2016 (5) TMI 312 - AT - Income TaxRevision u/s 263 - disallow deduction under section 80IB(10) - Held that:- The project of the assessee was approved by the local authorities on 25.10.2002. This project was subsequently revised and approved on 3.1.2004. The assessee has claimed deduction under section 80IB(10) on this project for A.Y.2004-05 also [2012 (10) TMI 1093 - GUJARAT HIGH COURT]. This deduction was disallowed to the assessee on the ground that there was commercial construction in the housing project comprised of 9.38% of the built up area. The Hon’ble High Court has observed that prior to 1.4.2005, there was no ceiling prescribed for commercial construction. The assessee has also demonstrated that it has not claimed 80IB deduction qua the commercial space. Apart from above, this issue is now covered by the decision of the Hon’ble Supreme Court rendered in the case of CIT Vs. Sarkar Builders (2015 (5) TMI 555 - SUPREME COURT ) wherein held that projects which were sanctioned and commenced prior to 1.4.2005 and completed by the stipulated date, then, 80IB(10)(d) would not be applicable on those projects. Therefore, even if the action of the CIT taken under section 263 is justified, then also on merit, the disallowance cannot be made - Decided in favour of assessee
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