2013 (2) TMI 783 - AT - Income Tax

Summary

Issues Involved:
The appeal involves the eligibility of the assessee for deduction u/s 80IB(10) based on the area of the plot developed for a housing project for A.Y. 2008-09.

Issue 1 - Area of Plot Eligibility:
The assessee claimed deduction u/s 80IB(10) for a housing project on a plot of 4100 sq.mtrs., contending it is more than one acre. However, the AO rejected the claim based on a recorded area of 3940 sq.mtrs., deeming it less than one acre, thus denying eligibility.

Issue 2 - Discrepancy in Plot Area Records:
The CIT(A) upheld the AO's decision, emphasizing the government records indicating a smaller plot area. Despite the assessee's evidence of the actual plot size, the CIT(A) deemed the government records as conclusive, leading to the rejection of the claim.

Judgement Summary:
The ITAT Mumbai considered the discrepancy in plot area records and the assessee's evidence. The ITAT referred to a previous case where verification of the plot area was directed for eligibility determination. Acknowledging the importance of accurate measurements, the ITAT set aside the matter for the AO to reevaluate based on physical verification, aligning with the previous decision.

Therefore, the appeal was treated as allowed for statistical purposes, emphasizing the significance of verifying the actual plot area for determining eligibility u/s 80IB(10) in housing projects.