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2020 (12) TMI 88 - HC - Income TaxDeductions u/s 80 IB (10) - AO disallowed deductions in respect of its housing project “Models Legacy” inter alia on the ground of breach of the provisions of Section 80IB(10)(e) in respect of 5 of the residential units in the said project, which otherwise comprised of a total of 352 residential units - Whether ITAT has erred in failing to recognise that Sub- Clause(e)to Section 80IB(10) came into effect only on 1st April, 2010 and not 19th August 2009 as presumed? - HELD THAT:- The reasoning of the ITAT that the exclusion of the 5 residential units from out of the 352 residential units in the entire housing project might affect the condition about the size of the plot which is required to have a minimum area of 1 Acre deserves no acceptance. Even if the area proportionate to the 5 residential units is excluded, the size of the plot which admeasures 28,014 sq. meters. i.e. almost about 7 Acres or thereabouts, will, in no manner, stand reduced to below 1 Acre. Therefore, this could not have been a ground to deny pro-rata deduction as was granted by the Commissioner (Appeals) in his Order dated 26.08.2015. Pro-rata deductions can be granted under Section 80IB(10) - The impugned Order made by the ITAT is set aside to the extent it denies the benefit of pro-rata deductions to the assessee.
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