TMI Blog2015 (3) TMI 190X X X X Extracts X X X X X X X X Extracts X X X X ..... of Section 80IB (10) does not even remotely suggest that the plot of land having minimum area of one acre must be vacant. The said Section allows deduction to a housing project (subject to fulfilling all other conditions) constructed on a plot of land having minimum area of one acre and it is immaterial as to whether any other housing projects are existing on the said plot of land or not. In these circumstances, construing the provisions of Section 80IB (10) by adding words to the statute is wholly unwarranted and such a construction which defeats the object with which the Section was enacted must be rejected. Thus we hold that the assessee is eligible to claim deduction under Section 80-IB(10) in respect of its project "Voora Prithvi" situ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at Kamaraj Salai, Kottivakkam in Chennai. The assessee developed a residential project on the said land under the name Voora Prithvi . Within the project, the assessee had constructed six housing towers named as Avishi, Avini, Dhatri, Pudumi, Urvi and Kshiti. The housing towers were approved by CMDA by 6 separate permits. The Commissioner of Income Tax in revision proceedings held that these are separate projects for which separate approvals have been granted by the CMDA. The CIT observed that the assessee, in the above said 6 projects, did not comply with the provisions of Section 80-IB(10) and remitted the matter back to A.O. The Assessing Officer, vide order dated 20.12.2012 passed under Section 143(3) r/w Section 263 of the Income-tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubstantiate his submissions, the ld. counsel placed on record a copy of sale deed in respect of one of the allottees of the residential unit in the project. The ld. counsel further submitted that the case of the assessee is squarely covered by the decision of the Hon'ble Bombay High Court in the case of CIT v. Vandana Properties (353 ITR 36) (Bom). 4. On the other hand, Shri N. Madhavan, JCIT, representing the Department, strongly opposed the argument made by the ld. counsel for the assessee. The ld. D.R. supporting the findings of the CIT(Appeals), contended that the assessee had developed 6 different projects on land measuring little over one acre. This fact is evident from separate permits granted by the CMDA for development of ea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A perusal of Schedule A shows that the land is situated at No.141, Kottivakkam Village, Saidapet Taluk, Chingelpet District within the Registration District of Madras. The total extent of land is 1acre and 6.5 cents, i.e. 46392 sq.ft. Each alottee gets 1022 sq.ft. undivided share of land as stated in Schedule A . There are 8 residential units in each block and in total there are 48 allottees. Thus, it is clearly evident that all the allottees have been given undivided share in total land measuring 1.065 acres. We find force in the submissions made by the ld. counsel for the assessee that all the 6 blocks are part of the same housing project. A further perusal of the records show that permits have been granted for each block on the same ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of the common man. However, in the absence of defining the expression 'housing project' and in the absence of specifying the size or the number of housing projects required to be constructed on a plot of land having minimum area of one acre, even one housing project containing multiple residential units of a size not exceeding 1000 square feet constructed on a plot of land having minimum area of one acre would be eligible for Section 80IB (10) deduction. If the construction of Section 80IB (10) put forth by the Revenue is accepted, it would mean that if on a vacant plot of land, one housing project fulfilling all conditions is undertaken, then deduction would be available to that housing project and if thereafter several other hou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o as to ensure that correct profits can be ascertained for the purpose of Section 80IB and also to identify receipts and repayments of long term finances under the provisions of Section 10(23G), separately financing arrangements and also, if it separately fulfills all other statutory conditions listed in Sections 10(23G) and 80(B(10). With regard to your query regarding the definition of Housing Project, it is clarified that any project which has been approved by a local authority as a housing project should be considered adequate for the purpose of Section 10(23G) and 80IB (10) 29. From the aforesaid letter of CBDT, it is clear that for the purposes of Section 80IB (10) it is not the mandate of the Section that the housing project ..... X X X X Extracts X X X X X X X X Extracts X X X X
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