TMI Blog2017 (5) TMI 75X X X X Extracts X X X X X X X X Extracts X X X X ..... te residential unit would form part of built-up area as per housing project or it was excluded from the approval granted by local authority. Since the copy of building approval was not available on record, this Tribunal is of the considered opinion that the matter needs to be reconsidered - appeal allowed by way of remand. - ITA Nos.858, 859 & 860/Mds/2016 - - - Dated:- 28-4-2017 - SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI D.S. SUNDER SINGH, ACCOUNTANT MEMBER For The Appellant : Shri Supriyo Pal, JCIT For The Respondent : Sh. B. Ramakrishnan, CA ORDER PER N.R.S. GANESAN, JUDICIAL MEMBER: All the three appeals of the Revenue are directed against the respective orders of the Commissioner of Income Tax (Appeals)-1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal by the assessee, the CIT(Appeals) by placing reliance on the judgment of Madras High Court in CIT v. Mahalakshmi Housing (2014) 41 taxmann.com 146, a copy of which is available at page 24 of the paper-book, allowed the claim of the assessee. Referring to this judgment of Madras High Court, the Ld. D.R. submitted that the Madras High Court by following its earlier order in Ceebros Hotels Pvt. Ltd. v. DCIT in Tax Case (Appeal) No.581 of 2008 dated 19.10.2012, found that open terrace cannot form part of built-up area. According to the Ld. D.R., it is not open terrace as claimed by the assessee. It is an extended portion of the residential unit. The assessee has constructed four-storied building. In the first floor, the portion of build ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... working of built-up area. Therefore, it is not open to the Revenue to review the approval given by the competent authority to hold that terrace also included in the built-up area. In view of this judgment of Madras High Court, according to the Ld. D.R., the CIT(Appeals) is not justified in allowing the claim of the assessee. 6. On the contrary, Sh. B. Ramakrishnan, the Ld. representative for the assessee, submitted that the assessee builtup residential apartments. No part of residential unit exceeded 1500 sq.ft. The area is provided at pages 1 to 7 of the paper-book. According to the Ld. representative, the Assessing Officer by taking into consideration the terrace area, found that it exceeded 1500 sq.ft.. The saleable area included the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In fact, the Madras High Court has observed as follows at para 36 of its judgment:- Given the fact that contemplation of deduction is to Housing Projects approved by the Local Authority, we hold that once the Local Authority have excluded open terrace from the working of built-up area, it is not open to the Revenue to review the approval given by the competent authority to hold that terrace would also be included in the built-up area. As already held the definition also does not speak in different language from what is given in the measurement provision of Bureau of Indian Standards in the context of the definition of Balcony in the Indian Standard. 9. In view of the above judgment of Madras High Court, it is necessary to examin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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