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2012 (9) TMI 1100 - ITAT DELHIDeduction u/s 80-IB(10) - Held that:- The stair case definitely comes under the common pool used by all the inhabitants, therefore, it cannot be included in the built up area. Even otherwise the Assessing Officer noted from the details submitted by the assessee that three types of flats were sold by the assessee and in the type “A” category the area is 1386.03 sq. ft., whereas in type “B” the total area is 1122.48 sq. ft., and in type “C” flat, the total area is 811.84 sq. ft. per flat. These details were submitted by the assessee vide letter dated 12-12-2008 before the ld. CIT(A) and earlier before the Assessing Officer. Such details have been reproduced at page 4 of the impugned order. There is a factual recording that stair case is common area between the two adjacent flats measuring 8.172 sq. mts. and if this area is reduced from the total area of the unit then certainly it comes below the prescribed limit of 1500 sq. ft. This being the first year of claiming deduction u/s 80-IB(10) of the Act, wherein the Assessing Officer himself noted that assessee’s 48 units of Type-A flats; 90 units of Type-B & Type-C units were under construction, the Assessing Officer himself computed the built up area by including the stair case area, therefore, it exceeded the prescribed limit. Such factual finding recorded in the impugned order was not controverted by the Revenue by bringing any positive material on record. In view of these facts we are of the considered opinion that the assessee is clearly entitled for such deduction. Therefore, we find no justification to interfere with the conclusion drawn in the impugned order, which is affirmed. Apportionment of expenses in the ratio of turn over to different units - no part of the head office expenses pertaining to management were debited to Krishna Lok Unit - Held that:- There is a categorical finding that the assessee company has not taken any loan secured or unsecured for Krishna Lok and the ledger print out of the current account maintained with Oriental Bank of Commerce and Punjab National Bank were furnished during assessment proceedings which clearly indicates that the total receipt from Krishna Lok project sale is utilized for the purpose of meeting expenses of Krishna Lok and none of the loans from Head Office were transferred to Krishna Lok. There is a further finding that there is no question of transfer any financial expenses to Krishna Lok and further the administrative and other expenses which include salary, bonus other perquisites, employees welfare and the rates and taxes, general expenses, newspaper and periodicals, legal and professional expenses, postage & telephone charges, power fuel and water charges, printing & stationery, vehicle repair & maintenance expenses etc. are incurred separately and debited separately to Krishna Lok restaurant and other projects. Such expenses are business specific and not commonly incurred. On careful scrutiny of allocated expenses, we find that the expenses in the nature of “audit fee” and “director remuneration” are for the assessee as a whole and not specific to the business. Consequently, the expenses of ₹ 33,660/- and ₹ 58,630 respectively are allocated to Krishna Project, therefore, addition to the extent of ₹ 2,92,290/- is sustained. The deletion of addition of balance expenses of ₹ 57,66,129/- is upheld. This ground is, therefore, allowed partly. Extra depreciation on computer peripherals/ accessories - Held that:- The assessee claimed ₹ 16,500/- to fixed assets in the block of computers and computer peripherals which as per the assessee are depreciable @ 60%, which was denied by the Assessing Officer . We find that the ld. CIT(A) considered the issue in a justified manner and deleted the addition of ₹ 7425/-. We find no justification to interfere with the same as nothing contrary was brought to our notice disallowance of deduction u/s 80-IB(10) - A.Y. 2007-08 - Held that:- As per sub-section (10) of Sec. 80-IB, the housing project which were approved before 31st day of March, 2008, the benefit will be hundred per cent subject to fulfillment of certain conditions. However, this condition was substituted by the Finance (No.2) Act of 2009 with effect from 1-4-2009, which has been further explained by sub-clause (ii) to the Explanation regarding completion certificate. However, since the approval was granted to the assessee on 1-4-2005, therefore, the assessee is not expected to fulfill the conditions which were not on the statute when such approval was granted to the assessee. Therefore, the appeal of the assessee deserves to be allowed.
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