TMI Blog2019 (7) TMI 1529X X X X Extracts X X X X X X X X Extracts X X X X ..... ction in respect of balance flats sold by assessee in the aforesaid housing project. Upholding the order of CIT(A), we dismiss the ground of appeal raised by Revenue. - ITA No. 917/PUN/2017 - - - Dated:- 9-7-2019 - MS. SUSHMA CHOWLA, JM AND SHRI ANIL CHATURVEDI, AM For the Appellant : Shri Pankaj Garg For the Respondent : Shri Gopal Aswani ORDER PER SUSHMA CHOWLA, JM: The appeal filed by Revenue is against order of CIT(A), Pune-5, Pune, dated 21.11.2016 relating to assessment year 2012-13 against order passed under section 143(3) of the Income-tax Act, 1961 (in short the Act ). 2. The Revenue has raised the following ground of appeal:- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lar was the case in respect of other two units i.e. first unit was allotted on 23.07.2009 and second unit was after 19.08.2009. The assessee claimed that it had complied with provisions of the Act and hence, was entitled to claim deduction under section 80IB(10) of the Act and an alternate submission was made that proportionate deduction in respect of units complying with the conditions laid down under section 80IB(10) of the Act be allowed. The Assessing Officer denied complete deduction claimed under section 80IB(10) of the Act. 5. In appeal before the CIT(A), similar plea was raised by assessee. The CIT(A) referred to provisions of clauses (e) and (f) of section 80IB(10) of the Act, which were inserted by the Finance Act, 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Revenue placed reliance on the order of Assessing Officer. 9. We have heard the rival contentions and perused the record. The limited issue which arises before us is that where there is violation of provisions of clauses (e) and (f) of section 80IB(10) of the Act, wherein more than one flat was allotted to an individual, then the assessee is not entitled to the claim of deduction under section 80IB(10) of the Act on such flats. However, the assessee is entitled to claim the proportionate deduction on the balance flats which are part of housing project, excluding the ones which had violated the provisions of clauses (e) and (f) of section 80IB(10) of the Act. 10. The Tribunal in the case of ACIT Vs. M/s. Namrat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. Arun Excello Foundation Pvt. Ltd. reported in 86 DTR 99 (Mad) and Vishwas Promoters Pvt. Ltd. Vs. ACIT reported in 81 DTR 58 (Mad) and was of the view that the assessee was entitled to claim prorata deduction on the profits of balance project excluding two flats which were allotted to spouses of individuals. We are in conformity with the findings of CIT(A), where the violation of clause (f) of section 80IB(10) of the Act has been made by the assessee, then in respect of profits on flats allotted to spouses of individuals is to be excluded and is not entitled to the claim of deduction under section 80IB(10) of the Act. The CIT(A) has already directed the Assessing Officer to verify the correctness of profits worked out by the assessee on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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