2013 (2) TMI 714 - HC - Income Tax

Summary

Issues involved:
The issues involved in the judgment are:
(i) Whether construction of buildings on vacant land constitutes a new project for claiming deduction u/s 80IB(10).
(ii) Whether adjoining flats approved as separate units can be treated as one unit for deduction purposes.
(iii) Whether built-up area includes balcony and terrace for claiming deduction u/s 80IB(10).
(iv) Whether obtaining a fresh commencement certificate makes the assessee eligible for deduction u/s 80IB(10).

Issue (i):
The Tribunal held that construction of buildings G, H & I on vacant land by Ankit Developers constitutes a new project, allowing the assessee to claim deduction u/s 80IB(10) despite the previous development of Maestro project by KDPL. The Tribunal's decision was based on the fact that the new construction was distinct from the prior project.

Issue (ii):
The Tribunal found that two adjoining flats, approved by the local authority as separate units with individual completion certificates, cannot be considered as one unit for calculating the built-up area under Section 80IB(10) of the Income Tax Act. As the decision was a matter of fact, the High Court declined to entertain this question.

Issue (iii):
Given the High Court's decision on the treatment of adjoining flats as separate units, the question of whether the built-up area includes balcony and terrace for deduction u/s 80IB(10) was deemed irrelevant for consideration.

Issue (iv):
The Tribunal's ruling that obtaining a fresh commencement certificate after the transfer of development rights made the assessee eligible for deduction u/s 80IB(10) was admitted for further consideration by the High Court. The Court acknowledged the significance of the timing of the commencement certificate in determining eligibility for the deduction.

This summary provides a detailed breakdown of the issues raised in the judgment and the corresponding decisions made by the High Court for each issue.