80IB(10) exemption ?, Income Tax

[hubert fernandes]

We have availed deduction u/s 80ib(10).The assesse has fulfilled all conditions u/s 80IB(10).ie land criterria,approval date,time frame for project completion and builindg standalone residential units for less than 1500 sq ft. the AO has disallowed the claim by virtue of oath statement recored u/s 131(1) wherein the purchaser has stated that "during the stage of construction , the builder at request of the purchaser have agreed to combine the adjacant unit" . There is no documentary evidence to support this claim , the very basis on which the AO has made the addition.The Assesse possesses the evidence incl the completion cert/occupance cert as issued by loacl authorities for stand alone residentioal units.Can the AO deny us the entire exemption , are there any case laws vis a vis the above factual position.

Posts / Replies

[Deepak Nagori]

Dear Hubert,

From your query, it seems that because of combining two units, the area of some units may have exceeded 1500 sft. However, deduction u/s 80-IB(10) will still be available on pro-rata basis for other units which are less than 1500 sft in area. Refer case laws: [Sreevatsa Real Estates P Ltd vs ITO (2010 (4) TMI 838 - ITAT CHENNAI)= (2010) 41 DTR 497 Chennai ITAT] and [SJR Builders vs ACIT (2009 (8) TMI 953 - BANGALORE TRIBUNAL Court )= (2010) 3 ITR 569 Bang ITAT].

Regards

CA Deepak Nagori

[mohandass munaswamy]

dear fernandes

pl refer the decision of ITAT chennai"A "third member bench reported in (2011) 141 TTJ (chennai) TN1