9911796707
|
Home
Issues involved: The judgment involves the claim of deduction u/s. 80IB(10) for a project where some flats exceeded the prescribed limit of 1500 sq.ft of built-up area, and the issue of allowing deduction u/s. 80IB in respect of profit from the sale of car parking area.
Claim of Deduction u/s. 80IB(10): The Revenue raised grounds challenging the allowance of deduction u/s. 80IB(10) for the project Purva Riviera due to flats exceeding 1500 sq.ft. The AO found violations based on various evidence including the sale brochure, statements of the director and site engineer, and physical measurements. The Ld. CIT(A) considered the appellant's submissions and held that the appellant had not violated the area restriction, allowing the deduction u/s. 80IB(10) based on judicial decisions cited by the appellant. Reassessment by AO: The Tribunal found that both the AO and Ld. CIT(A) had violated principles of natural justice in their respective findings. The issue was restored to the AO for de novo assessment, directing physical verification of flats, contacting occupants, and considering pro-rata deduction if violations were found. The AO was instructed to afford the assessee a reasonable opportunity to be heard and present evidence. Car Parking Area Deduction: Ground No. 6 related to allowing deduction u/s. 80IB for profit from the sale of car parking area. Citing a previous High Court decision, the Tribunal dismissed this ground, following the precedent that car parking space is integral to the housing project and eligible for deduction under section 80IB. Conclusion: The appeals filed by the Revenue were partly allowed for statistical purposes, with the issue of deduction u/s. 80IB(10) remanded to the AO for reassessment. The Tribunal dismissed the ground related to deduction for profit from the sale of car parking area based on the precedent set by the High Court.
|
