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2016 (7) TMI 192 - GUJARAT HIGH COURT

2016 (7) TMI 192 - GUJARAT HIGH COURT - TMI - Entitlment to deduction u/s. 80IB (10) - ITAT allowed the claim - Held that:- In case of Commissioner of Income Tax vs. Voora Property Develop P. Ltd.(2015 (3) TMI 456 - MADRAS HIGH COURT ) held and observed that when the project fulfilled the criteria for being approved as a housing project, the deduction under Section 80IB(10) could not be denied on the ground that the assessee had obtained a separate plan permits for the six blocks. In this case a .....

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, the Tribunal followed the decision of the Gujarat High Court in case of Commissioner of Income Tax, Ahmedabad IV vs. Omprakash R. Chaudhary [2015 (2) TMI 150 - GUJARAT HIGH COURT ], in which, it was held that the amendment made to Section 40 (a) (ia) by the Finance Act of 2010 granting additional time for depositing the TDS upto the due date of filing of the return would apply with retrospective effect from the date of the insertion of Section 40(a)(ia) i.e. from 01.04.2005. Since the assessee .....

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or short]. In Tax Appeal No. 221 of 2016 following questions have been presented for our consideration: A. Whether the Appellate Tribunal is right in law and on facts in holding that the assessee was entitled to deduction u/s. 80IB (10) of the Act amounting to ₹ 62,83,272/- notwithstanding the fact that the assessee has treated different blocks of apartments built on different pieces of land, each below one acre and each having a separate development agreement and separate BU permission as .....

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estion arises only in Tax Appeal No. 221 of 2016. 3. As can be seen, the first question pertains to disallowance of deduction of ₹ 62.83 lacs by the Assessing Officer concerning the assessee's claim of deduction under Section 80IB(10) of the Act. The assessee had claimed such deduction on the ground that it had developed a housing project fulfills necessary conditions of such claim. The Assessing Officer, however, noticed that there were three separate development agreements executed b .....

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es reported in 353 ITR 36 respectively and held that the assessee had developed one composite house project. Admittedly, the total land area was 4615.21 sq.mtrs. The condition that the project should be developed on a land more than one acre stood satisfied. The Tribunal, therefore, granted the benefits to the assessee. 5. Learned counsel for the Revenue submitted that the Tribunal committed a serious error. The assessee cannot be stated to have developed one single housing project since the sta .....

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tion 80-IB (10) in granting deduction equal to one hundred per cent of the profits of an undertaking arising from developing and constructing a housing project is with a view to boost the stock of houses for lower and middle income groups subject to fulfilling the specified conditions. The fact that the maximum size of the residential unit in a housing project situated within the city of Mumbai and Delhi is restricted to 1000 square feet clearly shows that the intention of the legislature is to .....

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e 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 housing projects are undertaken on the very same plot of land, the deduction would not be available to those housing projects as the plot ceases to be a vacant plot after the con .....

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