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TMI Blog2015 (3) TMI 190X X X X Extracts X X X X X X X X Extracts X X X X ..... ng permits for construction of 6 blocks (treated as 6 projects by Revenue) on a land measuring little over one acre. 2. The assessee is a company engaged in the business of construction and sale of residential flats. For assessment year under consideration, the assessee filed its return of income on 31.10.2007 admitting NIL income. While computing total income, the assessee claimed a sum of Rs. 2,40,76,271/- as deduction under Section 80-IB(10). The case of the assessee was selected for scrutiny under CASS and notice under Section 143(2) was issued on 12.09.2008. Scrutiny assessment under Section 143(3) was completed on 31.12.2009. During scrutiny assessment, the assessee was held to be ineligible for claiming deduction under Section 80-IB ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the findings of the authorities below. Shri D. Anand, Advocate, appearing on behalf of the assessee, submitted that the assessee purchased land measuring more than one acre on 03.05.2006. The assessee had developed a housing project on the said land. There were 6 blocks with different names in the housing scheme. All the blocks are under the project "Voora Prithvi". The CMDA had granted planning permits for the different blocks separately. However, the permits were given on the same date, i.e. 02.03.2006. All the towers in the project were constructed simultaneously. In total there are 48 residential units, i.e. 8 units in each tower. Allottees of the said residential units have been allotted undivided share in total land measuring 1.065 ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... liance. The benefit of Section 80-IB(10) has been denied to the assessee only on the ground that the assessee has been granted separate permits for construction of different blocks in the project. It has not been disputed by the Revenue that the assessee is having land more than one acre as envisaged under Section 80-IB(10). As it is evident from the records, the assessee has raised construction of 6 different blocks giving them different names for the purpose of convenience and identification. The ld. counsel for the assessee has placed on record a copy of the sale deed in respect of one of the allottees, to show that all the allottees have been given undivided share in land from the total area of 1.065 acres. The sale deed is at pages 51 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Hon'ble High Court observed as under:- "25. The question, therefore, to be considered is, whether the Revenue is justified in reading the expression 'plot of land' in Section 80IB (10)(b) as 'vacant plot of land'? 26. The object of Section 80IB (10) in granting deduction equal to one hundred per cent of the profits of an undertaking arising from developing and constructing a housing project is with a view to boost the stock of houses for lower and middle income groups subject to fulfilling the specified conditions. The fact that the maximum size of the residential unit in a housing project situated within the city of Mumbai and Delhi is restricted to 1000 square feet clearly sho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... area of one acre and it is immaterial as to whether any other housing projects are existing on the said plot of land or not. In these circumstances, construing the provisions of Section 80IB (10) by adding words to the statute is wholly unwarranted and such a construction which defeats the object with which the Section was enacted must be rejected. 28. Apart from the above, the Central Board of Direct Taxes (CBDT) by its letter dated 4th May 2001 addressed to the Maharashtra Chamber of Housing Industry has stated thus: "The undersigned is directed to refer to your letter No.MCHI:RSA:m:388/19799/3 dated January 2001 and to state that the additional housing project on existing ho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to give benefit only to the undertakings who construct housing projects on those few plots. Therefore, it is clear that on a plot of land having minimum area of one acre, there can be any number of housing projects and so long as those housing projects are approved by the local authority and fulfill the conditions set out under Section 80IB (10), the deduction thereunder cannot be denied to all those housing projects. Section 80IB (10) while specifying the size of the plot of land, does not specify the size or the number of housing projects that are required to be undertaken on a plot having minimum area of one acre. As a result, significance of the size of the plot of land is lost and, therefore, the assessee subject to fulfilling other ..... X X X X Extracts X X X X X X X X Extracts X X X X
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