2010 (6) TMI 813 - AT - Income Tax

Summary

Issues involved: The judgment involves the interpretation of deduction u/s 80IB in respect of residential flats, completion of the project within stipulated time, and inclusion of commercial units in the project.

Deduction u/s 80IB: The revenue appealed against the CIT(A)'s direction to allow deduction u/s 80IB for residential flats with built-up area of 1000 sq.ft. or less on a pro-rata basis. The AO disallowed the deduction citing non-compliance with conditions specified in section 80IB(10) regarding completion of the project, restriction on built-up area, and presence of commercial units. The CIT(A) allowed the deduction based on amended provisions and relevant circulars. The Tribunal upheld the CIT(A)'s decision but remitted the issue of pro-rata deduction for verification.

Completion of Project: The AO denied deduction for non-completion of the project within the stipulated time. The CIT(A) allowed the claim citing amendments removing the completion condition. The Tribunal upheld the CIT(A)'s decision, finding no error in allowing the deduction post-amendment.

Inclusion of Commercial Units: The revenue argued against inclusion of commercial units in the project, contending it should be solely a housing project. The CIT(A) allowed the deduction based on approvals and amendments permitting commercial establishments. The Tribunal upheld the CIT(A)'s decision, finding no error in allowing the deduction for commercial units.

Conclusion: The Tribunal partly allowed the revenue's appeal for statistical purposes, remitting the issue of pro-rata deduction for further verification while upholding the decisions on completion of the project and inclusion of commercial units.