2012 (7) TMI 89 - HC - Income Tax

Whether assessee is entitled for reduction under Section 80-IB(10) of the Act - flats were exceeding 1500 sq. ft. of built up area contrary to Section 10-IB(10) of the Act Held that - Residential units and the built up area of the residential units, even in the case of disputed flats do not exceed 1500 sq. ft. - appeal by revenue stands dismissed.

Summary

Issues:
1. Interpretation of Section 80-IB(10) of the Act regarding reduction entitlement.
2. Assessment of the built-up area in residential units under Section 10-IB(14)(a).

Analysis:
1. The first issue revolves around whether the Appellate Authorities correctly granted reduction under Section 80-IB(10) without considering the Assessing Officer's findings on certain flats exceeding 1500 sq. ft. The Tribunal disagreed with the Assessing Authority and the second Appellate Authority, concluding that even disputed flats did not exceed the specified size limit. The Tribunal's decision was based on a thorough review of the evidence. The Court determined this as a factual matter, not a legal issue, and hence dismissed the appeal, stating that no substantial question of law was involved.

2. The second issue concerns the examination of the built-up area in residential units under Section 10-IB(14)(a). The Appellate Authorities declined to review the Assessing Authority's findings on the built-up area, suggesting that the Assessing Officer lacked the competence to assess this aspect. However, the Tribunal disagreed with this approach and independently evaluated the evidence to determine that the built-up area did not exceed the statutory limit. The Court reiterated that this was a factual determination rather than a legal question, leading to the dismissal of the appeal without addressing the questions of law raised.

In conclusion, the judgment focused on factual assessments related to the size of residential units and entitlement to reductions under specific sections of the Act. The Court emphasized that these assessments were not legal questions but factual determinations based on the evidence presented, resulting in the dismissal of the appeal without delving into the questions of law raised by the parties.