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TMI Blog2019 (5) TMI 1126X X X X Extracts X X X X X X X X Extracts X X X X ..... deduction u/s 80-IB(10) in respect of the project at Gangai Nagar, Velachery. For the AY 2007-08 also, the assessee claimed deduction u/s 80IB(10) in respect of this project. The AO denied the deduction therein for the following reasons, viz., (i) the assessee was only a 'contactor' not a 'developer' as envisaged u/s 80IB(10) of the Act; (ii) had not obtained completion certification from the local authority and (iii) the units constructed by the assessee exceeded the maximum limit of 1500 sq. ft per unit laid down in section 80IB(10) of the Act. Though, the CIT (A) has allowed the assessee's claim for AY 2007-08, apart from the reasons mentioned in AY 2007-08, the AO denied the assessee's claim of deduction, inter alia, for the reason that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A) may be set-aside and that of the Assessing Officer be restored." 5. The Revenue has also filed the following the Additional Grounds of Appeal:- "1. The assessee had not filed all the copies of plan approvals and has now filed the same before the CIT (A), constituting evidence in Rule 46A. 2. The approval has been obtained for two different plots situated in th addresses at (a) New Secretariat Colony, 4th Street, Velachery, Chennai - 600 042 and (b) Gangai Nagar, 1st Main road, Velachery, Chennai - 600 042. 3. The CMDA approval for the plot at Sl No. (1) bearing Survey No.486/1 is obtained for an area admeasuring 27,039.21 sq ft and the plot at Sl No. (2) bearing Survey No. 482 is obtained for an area admeasuring 31,798.80 sq ft. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idential units of the approved plot of sl no. 1 even if taken individually, exceed 1500 sq ft as can be observed from the plan approval submitted. The Hon'ble High Court of Madras issued orders in respect of the assessee for the AY 2007-08 vide TC (A) No. 257 of 2012 dated 12/11/2014 on this issue to allow proportionate deduction only for those residential units which do not exceed 1500 sq ft. 6. It is comprehended that the additional evidence submitted by the assessee before the Ld CIT (A) as per Rule 46A have not come to her rescue, but substantiated that the assessee is eligible for claim deduction u/s 80IB(10) of the Act. The issue is similar for the AYs 2009-10 and 2007-08, wherein the assessee has claimed deduction u/s 80IB(10) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as also in an area more than one acre. The approvals were obtained on unit basis only for the benefit of taking advantage of the relevant rules of the local authority. Further from the order of the Ld CIT (A), it is apparent that he had arrived at the conclusion in favour of the assessee after considering the facts of the case and the decision of various higher judiciaries on the identical issue. Therefore, in these circumstances we do not find it necessary to interfere in this order. Hence, the Revenue's appeal is devoid of merits. It is ordered accordingly." and submitted that since the same project continues from AY 2007-08 onwards, and since the earlier appeals were decided in its favour, the Revenue's appeal may be dismissed. 8. We h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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