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Issues involved: Denial of deduction u/s 80IB(10) for construction of residential units exceeding 1500 sft.
M.A. No.70/Ahd/2010: The assessee, engaged in construction and development of residential projects, claimed deduction u/s 80IB(10) which was denied by the AO and affirmed by the ld. CIT(A). The Tribunal dismissed the related ground of the assessee stating that the built-up area of certain residential units exceeded 1500 sft, thus not complying with the pre-conditions of u/s 80IB(10). The Tribunal rejected the plea of the assessee for proportionate deduction for units below 1500 sft as well. However, in a subsequent section 264 order for Asst. Year 2006-07, deduction u/s 80IB was allowed for residential units below 1500 sft. The assessee submitted evidence showing that some flats were indeed below 1500 sft, which was not considered by the ld. CIT(A) or the Tribunal. The Tribunal decided to recall the order to examine the factual aspect of whether the assessee had actually built bungalows below 1500 sft and to determine if any deduction u/s 80IB could be allowed for such units. M.A. No.71/Ahd/2010: Similar issue as in M.A. No.70/Ahd/2010 was involved. The Tribunal decided to recall the order for the relevant assessment year to consider the same issue. In conclusion, both Miscellaneous Applications were allowed, and the appeals were directed to be fixed for hearing.
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