TMI Blog2017 (2) TMI 1116X X X X Extracts X X X X X X X X Extracts X X X X ..... proportionate deduction is to be allowed to the eligible units. In view thereof, we find no merit in the grounds of appeal raised by the Revenue against the order of CIT(A) in allowing proportionate deduction. However, since the assessee is held to be entitled to claim the deduction on the two units as projections and open terrace are not to be included in built up area for such projects which were sanctioned before 01.04.2005, the assessee is held to be entitled to claim the deduction on such units also and consequently, where all the units of project are eligible units, the assessee is entitled to the deduction claimed under section 80IB(10) of the Act in respect of whole project. Accordingly, we hold so. The grounds of appeal raised ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exceeded the restriction resulting into clear violation of clause (c) of subsection (10) of Section 80IB rw clause (a) of Sub-section (14) of Section 80IB of the IT Act, 1961 ? 2. Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) was justified in holding that the assessee was entitled to deduction u/s 80IB(10) of the I . T . Act, 1961 on pro-rata basis in respect of eligible units, when there is no such provision in the Act? 3. Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) was justified in granting deduction u/s 80IB(10) on proportionate basis to individual dwelling units whereas as per section 80IB(10), the deduction is allowable to the project as a whole on the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rse of assessment proceedings relating to assessment year 2009-10, the deduction claimed under section 80IB(10) of the Act was denied to the assessee because of non-fulfillment of conditions with respect to built up area. During the earlier assessment proceedings, reference was made to the Government Valuation Officer, Solapur to ascertain the built up area and he reported that the built up area including projections and area pertaining to projected terrace in respect of two units i.e. R.H./D6 and R.H-3 was in excess of permissible limit of 1500 sq.ft. The Assessing Officer noted that the position with respect to built up area was still prevailed during the year under consideration and the assessee was asked to explain as to why the said de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alization of his brother, the document could not be handed over to the Counsel. We find merit in the said plea of the assessee and accordingly, condone the delay in filing the Cross Objections late by period of 37 days relating to assessment years 2010-11 and 2008-09. 11. It may be clarified herein that pursuant to disallowance made in assessment year 2009-10, the assessment proceedings for assessment year 2008-09 were reopened under section 147 of the Act by the Assessing Officer and the deduction claimed under section 80IB(10) of the Act was denied to the assessee. 12. The only issue raised by the Revenue is against the prorata deduction allowable to the assessee in case two of the units are held to be exceeding the permissible cove ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y project where some of residential units exceeded the built up area then also proportionate deduction is to be allowed to the eligible units. In view thereof, we find no merit in the grounds of appeal raised by the Revenue against the order of CIT(A) in allowing proportionate deduction. However, since the assessee is held to be entitled to claim the deduction on the two units as projections and open terrace are not to be included in built up area for such projects which were sanctioned before 01.04.2005, the assessee is held to be entitled to claim the deduction on such units also and consequently, where all the units of project are eligible units, the assessee is entitled to the deduction claimed under section 80IB(10) of the Act in respe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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