2012 (4) TMI 644 - AT - Income Tax

Summary

Issues Involved:

1. Deletion of addition towards receipts not shown.
2. Deduction u/s 80IB(10) concerning flats exceeding 1500 sq.ft.
3. Deduction u/s 80IB(10) concerning combined residential and commercial projects.

Summary:

Issue 1: Deletion of Addition towards Receipts Not Shown

The revenue contended that the CIT(A) erred in directing the Assessing Officer to delete the addition of Rs. 4,43,366/- towards receipts not shown. However, the Tribunal upheld the CIT(A)'s order, noting that the issue became infructuous and revenue neutral due to the assessee's entitlement to deduction u/s 80IB(10).

Issue 2: Deduction u/s 80IB(10) Concerning Flats Exceeding 1500 sq.ft

The revenue argued that some flats exceeded 1500 sq.ft, violating sec. 80IB(10). The Tribunal found no dispute regarding the built-up area being less than 1500 sq.ft as per the sanctioned plan. The CIT(A) detailed the area of each flat, confirming compliance with the built-up area requirement. The Tribunal concluded that receiving consideration for more than 1500 sq.ft, including common areas, did not constitute a violation of sec. 80IB(10)(c), as the built-up area remained within limits.

Issue 3: Deduction u/s 80IB(10) Concerning Combined Residential and Commercial Projects

The revenue contended that the combined residential and commercial project exceeded the commercial area limit prescribed u/s 80IB(10)(d). The Tribunal noted that the layout plan was approved by the Pune Municipal Corporation (PMC) as one project, but subsequently, two separate projects were sanctioned. The Tribunal held that as per pre-amended provisions of sec. 80IB(10), there was no condition regarding commercial area. The Tribunal cited the decision in Saroj Sales Organisation vs ITO and the Hon'ble Jurisdictional High Court's ruling in Commissioner of Income-tax v. Brahma Associates, affirming that the amendment effective from 1.4.2005 could not be applied retrospectively. Therefore, the Tribunal upheld the CIT(A)'s order, allowing the deduction.

Conclusion:

The appeal filed by the revenue was dismissed, and the Tribunal upheld the CIT(A)'s order on all issues. The order was pronounced on 25th April 2012.