TMI Blog2014 (3) TMI 1036X X X X Extracts X X X X X X X X Extracts X X X X ..... able to give any finding on this. Moreover, the BPS scheme was applicable only to the applications made on before 31-03-08. The plans were approved only in July 2007. Payments for penalty were made later as can be seen from copy of approval placed on record. Since revised plans were not placed on record we are unable to decide issue only on legal principles. The A.O. is directed to examine the original plans, revised plans and examine whether the deduction under 80IB is eligible for revised plan. In case of area of flats have changed, to verify whether the constructed apartments are within the norms prescribed under section 80IB(10). Needless to say that balconies and common areas are not to be considered as part of ‘flat area’ as per t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ousing project at Miyapur and the original plan for construction of 9763 sq. meters was approved by the local authority vide proceedings dated 13.07.2007. However, assessee constructed 16307.60 sq. meters which was regularized under the Building Penalization Scheme of Government of Andhra Pradesh and the orders were passed on 26.08.2010. The A.O. in the course of assessment proceedings observed that assessee firm is eligible for the deduction only in respect of constructed area of 9763.76 sq. meters under section 80IB. However, on noticing that the project approval was obtained in the name of land owners Smt. R. Sairani and others, and that assessee has constructed violating the plan approved, the claim of 80IB was not allowed. Further, whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... missions, we are of the opinion that assessee is eligible for deduction to the extent of constructed area of 9763 sq. meters which was originally sanctioned. Therefore, the Revenue ground on allowing proportionate 80IB deduction does not require any reconsideration as the assessee is held otherwise eligible for deduction under section 80IB(10) and the A.O. has not find out any reason to deny except (a) plans are not in the name of the assessee (b) that there is violation of the building plans which was regularized subsequently on 26.08.2010. To that extent, Revenue grounds are not maintainable as the Coordinate Bench in the case of Radhe Developers (supra) held that permission in the name of developer is not required and what is required is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ordable dwelling and ought to be interpreted in that light. In view of the matter, the incentive provision must be construed in a manner which advances the object and intention of legislature. The fact that the assessee has obtained approval for the housing project cannot be lost sight of. As for the excess arrear constructed, it is for the BBMP to look into the violations if any, in the construction of the housing project. That does not however, authorize the A.O. to hold that the assessee has not got approval for the housing project or the conditions laid down in section 80IB(10) stated violated. 7. Even though principles considered therein do apply to the present facts, what we are unable to decide is whether the same will apply to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... O. or by the CIT(A) in the orders. Not only that as seen from the P L account assessee is still carrying closing stock of more than ₹ 4 crores, whereas sales during the year was ₹ 6.24 crores. Whether assessee hass continued to claim 80IB(10) in later year also on the balance of constructed area required to be examined, keeping in mind the method of accounting followed. As AO estimated income for non production of books of account, we are of the opinion that these aspects also require examination. For these purposes, we are of the opinion that the issue in assessee s grounds require re-examination by AO. Therefore, since the issues are restored to the file of the A.O., he should examine the books of accounts in order to determ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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