TMI Blog2019 (11) TMI 139X X X X Extracts X X X X X X X X Extracts X X X X ..... Y HIGH COURT] has approved the concept of proportionate deduction u/s. 80IB(10) of the Act. The Hon ble Madras High Court in the case of Viswas Promoters Private Limited Vs. Assistant Commissioner of Income Tax [ 2012 (11) TMI 1117 - MADRAS HIGH COURT] has held that the assessee is eligible to claim proportionate relief on the units of a housing project satisfying the conditions laid down u/s. 80IB(10) of the Act. Thus, the Hon ble High Court upheld allowability of proportionate deduction u/s. 80IB(10) of the Act. The Tribunal in various decisions has been consistently allowing proportionate deduction to the extent housing project complies with all the conditions under the provisions of section 80IB(10) We find no infirmity in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spect of two flats i.e. Flat No. B-201 and Flat No. B-504. Consequently, the Assessing Officer denied the benefit of deduction u/s. 80IB(10) on the entire project. Aggrieved by the assessment order dated 27-03-2015, the assessee filed appeal before the Commissioner of Income Tax (Appeals). The Commissioner of Income Tax (Appeals) after examining the facts came to the conclusion that the assessee has violated the provisions of clause (e) and (f) of section 80IB(10) of the Act, in respect of two residential flats. The Commissioner of Income Tax (Appeals) following the decision of Hon ble Madras High Court in the case of Vishwas Promoters (P.) Ltd. Vs. Asst. Commissioner of Income Tax reported as 214 Taxman 524 allowed propor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me Tax (Appeals). 6. We have heard the submissions made by representatives of rival sides and have perused the orders of authorities below. The only issue in appeal is against the findings of Commissioner of Income Tax (Appeals) in allowing proportionate deduction u/s. 80IB(10) on eligible residential units of the housing project. Undisputedly, the assessee has violated conditions set out in clause (e) and (f) of section 80IB(10) in respect of only two flats. The Commissioner of Income Tax (Appeals) has granted proportionate deduction u/s. 80IB(10) in respect of remaining housing project. The Hon ble Bombay High Court in the case of Commissioner of Income Tax Vs. M/s. Vandana Properties (supra) has approved the concept of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee 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. Namrata Developers (supra) vide para 20 had observed as under:- 20. We have heard the rival contentions and perused the record. The assessee had claimed deduction under section 80IB(10) of the Act in respect of project Leelawati Greens . Under the provisions of section 80IB(10)(f) of the Act, which came into force w.e. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 sale of above said flats and consequently, upholding the said directions, we dismiss the grounds of appeal raised by the Revenue. 11. The issue arising before us is similar to the issue before the Tribunal and following the same parity of reasoning and in view of clear mandate of the Legislature, the assessee is not ent ..... X X X X Extracts X X X X X X X X Extracts X X X X
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