2011 (7) TMI 1352 - HC - Income Tax

Summary

Issues involved:
The issues involved in the judgment are:
1. Whether the assessee is entitled to deduction under Section 80IB for car parking area as part of a residential unit.
2. Whether the assessee's declaration during a survey operation affects the claim for deduction under Section 80IB.

Issue 1: Deduction under Section 80IB for car parking area
The Revenue raised the issue of whether the assessee is entitled to deduction under Section 80IB for a car parking area as it does not form part of a residential unit eligible for the deduction under Section 80IB(10) of the Act. The Commissioner of Income Tax (Appeals) and the Income Tax Appellate Tribunal found that the car parking space is integral to the housing project and is necessary for obtaining approval for the project. Therefore, the Tribunal's decision to allow the deduction for the housing project, including the amount received for the car parking area, was upheld.

Issue 2: Effect of assessee's declaration on deduction claim
The second issue raised was whether the assessee's declaration during a survey operation, resulting in a reduced claim for deduction under Section 80IB for the car parking area, affects the entitlement to the deduction. The Tribunal held that the assessee is entitled to the deduction for the housing project, including the car parking area, despite the declaration made during the survey operation.

In conclusion, the High Court dismissed the appeal, stating that the assessee is entitled to the deduction under Section 80IB for the housing project, including the car parking area, as it is an essential part of the project approved by the competent authority.