Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (9) TMI 856 - ITAT MUMBAIDeduction claimed u/s 80IB(10) disallowed - assessee has failed to fulfill conditions specified u/s 80IB(10) as the flat size of Tower T5 & T6 is more than 1500 sq.ft. and hence, the assessee is not eligible for deduction u/s 80IB(10) in respect of whole project - Held that:- The principle is now well settled with the decision in the case of CIT Vs Vandana Properties (2012 (4) TMI 54 - BOMBAY HIGH COURT), wherein clear that the assessee is eligible for proportionate deduction from eligible profit in a housing project in respect of flat which is having super built up area of less than 1500 sq.ft. CIT(A), after considering relevant facts has rightly directed the AO to allow proportionate deductions in respect of Tower T4 out of total deductions claimed by the assessee including Towers T5 & T6. In this view of the matter and consistent with the view taken by the co-ordinate bench in assessee’s own case in line with the decision of Hon’ble Bomby High Court in the case of CIT Vs Vandana Properties (supra), we are of the view that the assessee is eligible for proportionate deduction of eligible profit wherever the flat size is less than 1500 sq.ft. subject to fulfillment of other conditions specified in section 80IB(10). Deductibility of eligible profit from Tower T5 & T6 in the light of provisions of section 80IB(10) - Held that:- The deduction claimed u/s 80IB(10) needs to be examined in the light of said provisions to ascertain whether the assessee is eligible for deduction or not in the given facts and circumstances of the case. The issue of revenue neutrality in the light of book profit computed u/s 115JB does not in any way hamper the allowability of deduction claimed u/s 80IB(10) as the assessee could always claim tax credit on taxes paid on book profit in subsequent years. Therefore, we are of the view that the issue needs to be re-examined by the Ld.CIT(A) in the light of facts of assessee’s case and provisions of section 80IB(10) in respect of Tower T5 & T6. Hence, we set aside ground 4 raised by the revenue in their appeal and cross objection filed by the assessee to the file of the CIT(A) and direct him to decide the issue.
|