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2017 (5) TMI 707 - AT - Income TaxDisallowance of deduction under section 80-IB(10) - proportionate disallowance - Held that:- Merely because the same units sold or allotted during the financial year are not complied with the conditions of section 80-IB(10) of the Act, the entire claim of the assessee for the entire project cannot be dismissed at the threshold. We are of the considered opinion that the claim of the assessee under section 80-IB of the Act cannot be dismissed in entirety and the proportionate disallowance in respect of units are not complied with conditions of section 80-IB(10) of the Act is quite justified and correct. Therefore, we direct the Assessing Officer to restrict the disallowance proportionately in respect of allotment and sale transactions which are not complied with the conditions of section 80-IB(10) of the Act as applicable for the assessment year 2010-11 and to allow the remaining deduction as claimed by the assessee for eligible units allotted or sold to the assessee. Accordingly, we confirm the conclusion of the learned Commissioner of Income-tax (Appeals) with the directions as given to the Assessing Officer in the earlier part of this paragraph. Since both the rival representatives agreed that the facts and circumstances for the assessment years 2011-12 and 2012-13 are identical, therefore, we further hold that our conclusion noted for the assessment years 2010-11 is applied to the assessment years 2011-12 and 2012-13 mutatis mutandis and the Assessing Officer is directed to make proportionate disallowance in respect of the units allotted and sold during this period keeping in view the amendments in section 80-IB(10) of the Act which are applicable with effect from April 1, 2010. - Decided partly in favour of assessee.
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