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2019 (11) TMI 139 - AT - Income TaxPro-rata deduction u/s. 80IB(10) on a housing project developed by the assessee - assessee has violated conditions of clause (e) and (f) of section 80IB(10) of the Act in respect of two flats out of entire project - HELD THAT:- Undisputedly, the assessee has violated conditions set out in clause (e) and (f) of section 80IB(10) in respect of only two flats. The Commissioner of Income Tax (Appeals) has granted proportionate deduction u/s. 80IB(10) in respect of remaining housing project. The Hon’ble Bombay High Court in the case of Commissioner of Income Tax Vs. M/s. Vandana Properties [2012 (4) TMI 54 - BOMBAY HIGH COURT] has approved the concept of proportionate deduction u/s. 80IB(10) of the Act. The Hon’ble Madras High Court in the case of Viswas Promoters Private Limited Vs. Assistant Commissioner of Income Tax [2012 (11) TMI 1117 - MADRAS HIGH COURT] has held that the assessee is eligible to claim proportionate relief on the units of a housing project satisfying the conditions laid down u/s. 80IB(10) of the Act. Thus, the Hon’ble High Court upheld allowability of proportionate deduction u/s. 80IB(10) of the Act. The Tribunal in various decisions has been consistently allowing proportionate deduction to the extent housing project complies with all the conditions under the provisions of section 80IB(10) We find no infirmity in the order of Commissioner of Income Tax (Appeals) in allowing proportionate deduction u/s. 80IB(10) of the Act on eligible units of housing project. The impugned order is upheld and the appeal of Revenue is dismissed being devoid of any merit.
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