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2017 (11) TMI 116 - AT - Income TaxClaim of deduction u/s 80IB(10) - out of the total 149 flats built by assessee, 10 flats were having area of more than 1500 sq ft. - AO had noted that the Valuer appointed by the Revenue authorities had certified that 10 flats were having an area exceeding 1500 sq. ft but the 2 Valuers / Architects appointed by the assessee had certified that the area in respect of the 10 flats were less than 1500 sq.ft - reason for the difference in the area as calculated by the Valuers was on account of the measurement of the thickness of the wall. Held that:- The Valuer appointed by the Revenue had considered the thickness of the external walls at 18” at six places which was in actual a double wall taken as an architectural projection for aesthetic purpose whereas the Architects had considered the thickness of the wall at 6” which was as per the sanctioned plan. We find that CIT(A) in his order has also noted that the Valuer approved by Revenue had not given the breakup of the calculation for arriving at the area exceeding 1500 sq.ft. for 10 flats. He has also noted that that Shri Ruparel has observed that as a general trend prevalent in the industry, the architectural projections in the form of features, chajjas, hollow boxes, solid boxes for enhancing the aesthetics of the building which is also allowed by the local authorities are not counted by any Corporation in the built-up area calculations and the projections was not utilizable from inside and neither it was added to the carpet area nor it was in habitable nature. The findings namely that the projections are external projections, it is for the purpose of aesthetic beauty of the building, are not habitable and not utilizable from inside and all allowed by the Corporation and not considered by them for the purpose of calculating the area of the flat, has not been controverted by the Revenue. In such a situation, we are of the view that the deduction u/s 80IB(10) of the Act cannot be denied to the assessee. We therefore direct the AO to allow the deduction on the entire project. Thus the grounds of the assessee are allowed. As far as Revenue’s grievance with respect to granting of prorata data we find that Ld.CIT(A) after considering the decisions cited in his order has noted that the various authorities have held that assessee is entitled to deduction with respect to the units which have complied with the condition laid down u/s 80IB(10) of the Act. Before us, Revenue has not brought on record any contrary binding decision in its support nor has controverted the findings of Ld.CIT(A). No reason to interfere with that portion of order of Ld.CIT(A) and thus the grounds of Revenue are dismissed.
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