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2016 (7) TMI 446 - AT - Income TaxEligibility of deduction u/s.80IB - Held that:- The undertaking qualifying for deduction u/s.80IB of the Act is an undertaking developing and building housing projects and the deduction is in respect of profits and gains derived from such housing project, satisfying the conditions stipulated in the clause therein. Thus, within a composite housing project, where there are eligible and ineligible units, assessee can claim deduction in respect of eligible units in the project and even within the block, assessee is entitled to claim proportionate relief in the units satisfying the extent of built-up area. CIT(A) rightly held that assessee was eligible for deduction u/s.80IB of the Act for Tower T1 amounting to ₹ 1,44,91,313/- being eligible profit u/s.80IB of the Act. For the balance amount of deduction claimed u/s.80IB i.e. ₹ 1,70,09,616/- (Rs.3,15,00,929/- minus ₹ 1,44,91,313/-) assessee has stated that disallowance in respect of Towers T2 and T3 of Kapil Malhar Intelligent Home would be revenue neutral as regular tax liability is less than tax paid on the book profit. Assessee has not filed any specific submission or details for Tower T2 and T3 regarding the claim made for 80IB of the Act. Since the eligible deduction would be tax neutral the adjudication of balance amount becomes mere academic in nature and same was not directed. Above reasoned finding of CIT(A) needs no interference from our side, whereby CIT(A) has allowed the claim of assessee as discussed above. Same is upheld.
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