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TMI Blog2011 (7) TMI 1280X X X X Extracts X X X X X X X X Extracts X X X X ..... ar, the assessee had claimed deduction u/s. 80 IB (10) of the Act at ₹ 2,62,32,323 in respect of housing project named Pate Sanskruti . The A.O allowed the claim in the assessment framed u/s. 143(3) of the Act. The Ld CIT remained of the view that the net buildable area of the plot on which the said project was constructed is 3592.34 Sq. mtrs., which is below the prescribed limit of one acre as laid down in Sec. 80 IB (10), hence the project did not fulfilled the conditions laid down under the said Section for eligibility of the claimed deduction. The Ld CIT issued show cause notice u/s. 263 of the Act to the assessee for withdrawal of the deduction. He was, however, not satisfied with the cause shown by the assessee and held the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. In the said letter with Annexure enclosed, the assessee submitted that all the details of the plot of land on which the project was constructed were furnished to the A.O. Thus all the relevant details were made available to the A.O during the course of assessment proceedings and the A.O had also specifically enquired about size of the plot. Thus, the assessment has been completed after due application of mind and after verifying of the details. The Ld. A.R. submitted further that the authorities below are bound by the CBDT Circular No. 5 of 2005 dt. 15.7.2005 wherein it has been specifically mentioned that the area occupied by internal roads, D.P. roads etc., should not be excluded while computing the area of the plot for the purposes of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt of the plot. He submitted that additional FSI was also granted by the PMC to the developers on account of acquisition of land for road purpose. The PMC has allowed the assessee the construction of FSI of 4607.198 Sq. mtrs. as it is evident from the sanctioned plan. The Ld. A.R. submitted further that from the plan, it can be further noticed that adjoining of the plot of the assessee is the open space of about 644.80 sq. mtrs. on which assessessee has constructed the club house and developed a garden for the flat owners of the project as a part of the project. The Ld. A.R. thus submitted that the Ld CIT was not justified in coming to the conclusion that the assessment order whereby the A.O has allowed claimed deduction u/s. 80IB(10) to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i.e. copy of questionnaire issued by the A.O (page Nos. 5 to 9 of the paper book) and reply dated 30th November 2007 of the assessee thereto (page Nos. 10 to 14 of the paper book) clearly suggest that during the course of assessment proceedings, the A.O had asked the assessee to furnish the details of size of the plot on which the housing project was constructed. In point No. 9 of the said letter dated 30th November 2007, the assessee has clarified that the project Pate Sanskruti was constructed on the land situated at S.No. 89/1 +90/1 + 91/1. In the said letter, assessee has also clarified that the area is 49,628 sq.fts. The details of the entire plot has also been given in Annexure enclosed to the said letter dt. 30.11.2007 of the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ence by way of development agreement executed on 23.6.2006 (page Nos. 18 to 54 of the paper book) along with Schedule B defining the area of the plot as 4612.34 Sq. mtrs.; sanctioned building plan of the project approved by the PMC (Page No. 1 of the paper book) showing total area of the plot on which the project has been approved as 4612.34 sq. mtrs. ; on page No. 46 of the paper book, the assessee has made available the lay out plan of the plot showing the sanction of the D.P. Road. The area of D.P. road has been shown as 1020 sq. mtrs. It is also evident from the sanctioned plan made available at page No.1 of the paper book that PMC has allowed to the assessee the construction of the FSI of 4607.198 sq. mtrs. Generally, the FSI allowed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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