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2021 (5) TMI 554 - HC - Income TaxDeduction u/s 80IB - as per revenue project was approved with a sanctioned built-up area and the assessee has eventually constructed the area far in excess of what was approved? - Whether assessee is eligible to claim deduction under section 80IB that the assessee has violated the plan approved and that the assessee did not get any further approval for "Floor Area Ratio" (FAR) by the authorities? - tribunal allowed deduction - whether the Tribunal is erred in allowing deduction under Section 80IB(10) of the Act when the project was approved with a sanctioned built up area and the assessee has eventually constructed the area far in excess of what was approved and prayed for allowing of this appeal? - HELD THAT:- On close scrutiny of the judgment rendered by this court in Brigade Enterprises Ltd. [2020 (10) TMI 1168 - KARNATAKA HIGH COURT], wherein held has held that accounting Standard 7 was not applicable to the real estate developers. Therefore, he submitted that percentage of completion method cannot be thrashed upon assessee and assessee was right in following the project completion method as per accounting standard 9 and the facts involved in the said case, we are of the considered opinion that the substantial question of law involved in this appeal is squarely answered in the said case. Following the dictum in Brigade Enterprises, the substantial questions of law raised in this appeal are answered against the Revenue and in favour of the assessee.
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