TMI Blog2008 (10) TMI 589X X X X Extracts X X X X X X X X Extracts X X X X ..... For enabling the benefit of section 80-IB it is necessary that profits must be derived in the previous year from housing project. The eligibility conditions include, inter alia, that the built-up area should not exceed 1500 sq. ft. in the context of cities other than Delhi and Mumbai. This restriction is applicable to the entire project. If some of the residential units of the project comprised area exceeding the prescribed limit, the benefit as per the language of the section cannot be extended to the project. The language employed in a statute is the determinative factor of the legislative intent. The first and primary rule of construction is that the intention of the legislation must be found in the words used by the Legislature its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The solitary issue raised in this appeal relates to the allowability of deduction of Rs. 4,48,98,542 under section 80-IB(10) of the Income-tax Act, 1961 (hereinafter called the Act). We have heard the rival submissions in the light of the material placed before us and the precedents relied upon. During the relevant assessment year the assessee completed four housing projects in the city of Madurai, namely, Agrini, Vajra, Porkudam Phase-I and Phase-II. Out of these four in the Agrini and Vajra projects the assessee constructed flats exceeding 1500 sq. ft. and also flats of less than 1500 sq. ft. in area. The assessee claimed deduction under section 80-IB(10) in respect of flats which have area measuring less than 1500 sq. ft. The Assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. each were made eligible for the benefit. For enabling the benefit of section 80-IB it has become a condition precedent that housing projects in places other than Delhi and Mumbai should not exceed the built-up area of 1500 sq. ft. It was argued on behalf of the assessee that each block of residential units covered by a plan has to be considered as a separate project and deduction is to be allowed on that basis. For enabling the benefit of section 80-IB it is necessary that profits must be derived in the previous year from housing project. The eligibility conditions include, inter alia, that the built-up area should not exceed 1500 sq. ft. in the context of cities other than Delhi and Mumbai. This restriction is applicable to the entire ..... X X X X Extracts X X X X X X X X Extracts X X X X
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