2012 (3) TMI 502 - AT - Income Tax

Summary

Issues involved:
The judgment involves the allowability of deduction u/s. 80IB(10) of the Income-tax Act, 1961.

Details of the judgment:

Issue 1: Allowability of deduction u/s. 80IB(10) of the Income-tax Act, 1961
The Tribunal considered the definition of "built-up area" u/s. 80IB(14)(a) which includes the inner measurements of the residential unit at the floor level, including projections and balconies. The Tribunal emphasized that the actual measurements, not estimates, should be considered. The Tribunal referred to the legislative intent and the Supreme Court's interpretation principles. It was concluded that if the total built-up area exceeds 1500 sq. ft. per unit after including portico and balcony, the assessee is not entitled to deduction u/s. 80IB. The Tribunal upheld the order of the CIT(A) on this issue based on the statutory language and legislative intent.

Issue 2: Working of eligible deduction u/s. 80IB(10)
One of the grounds raised was the failure of the CIT(A) to adjudicate on the working of eligible deduction u/s. 80IB(10) after netting interest paid against interest income. The Tribunal deemed this ground as academic since the main ground related to the deduction u/s. 80IB(10) was already held as not allowable. Therefore, this ground was dismissed as infructuous.

In conclusion, the appeals of both assessees were dismissed by the Tribunal based on the above considerations.