2012 (11) TMI 1154 - AT - Income Tax

Summary

Issues Involved:
1. Deduction u/s 80IB(10) for "Maestros" and "Mistry Moor" projects.
2. Deduction u/s 80IB(10) for "Rose Parade" project.
3. Deduction u/s 80IB(10) for "Lapiz Lazuli" project.
4. Pro-rata deduction u/s 80IB(10) for "Lapiz Lazuli" project.

Summary of Judgment:

1. Deduction u/s 80IB(10) for "Maestros" and "Mistry Moor" Projects:
The Tribunal upheld the CIT(A)'s decision allowing the deduction u/s 80IB(10) for the "Maestros" and "Mistry Moor" projects. This decision was based on the Tribunal's earlier ruling in the assessee's favor for A.Y. 2001-02 to 2003-04, where similar issues were adjudicated.

2. Deduction u/s 80IB(10) for "Rose Parade" Project:
The CIT(A) allowed the deduction u/s 80IB(10) for the "Rose Parade" project after considering the DVO's report, which confirmed that the built-up area of none of the flats exceeded 1500 sq.ft. The Tribunal found no infirmity in this decision and dismissed the revenue's appeal on this ground.

3. Deduction u/s 80IB(10) for "Lapiz Lazuli" Project:
The CIT(A) denied the deduction u/s 80IB(10) for the "Lapiz Lazuli" project, as only 76 out of 214 flats had a built-up area of less than 1500 sq.ft. The Tribunal upheld this decision, noting that the combination of adjoining flats into larger units exceeded the prescribed limit.

4. Pro-rata Deduction u/s 80IB(10) for "Lapiz Lazuli" Project:
The Tribunal allowed the assessee's request for pro-rata deduction u/s 80IB(10) for the "Lapiz Lazuli" project, following the precedent set in the case of D.S. Kulkarni Developers Ltd. The Tribunal directed the AO to calculate the proportionate deduction for the flats with a built-up area of less than 1500 sq.ft. and allow the deduction accordingly.

Conclusion:
The appeal filed by the revenue was dismissed, and the appeal filed by the assessee was partly allowed, granting pro-rata deduction for the "Lapiz Lazuli" project.