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TMI Blog2018 (6) TMI 1581X X X X Extracts X X X X X X X X Extracts X X X X ..... omplied with the conditions provided in section 80IB(10) and AO ignored the same and failed to comment on the eligibility of section 80IB(10) of the Act. AO failed to appreciate the judgment of jurisdictional High Court in the case of CIT Vs. Brahma Associates (2011 (2) TMI 373 - BOMBAY HIGH COURT ) in the right perspective and chose to reproduce part of the judgment to his convenience to deny the claim of the assessee. It is a settled legal proposition that the claim of deduction is allowable on pro-rata basis qua the complete part of the project. Considering the above, we are of the opinion that the assessee is entitled to pro-rata deduction u/s.80IB(10) of the Act for the buildings B, C and D. We therefore, uphold the order of CIT(A). ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oped a residential housing project named Faith at Balewadi, Pune and claimed the deduction of ₹ 16,82,85,520/- u/s.80IB(10) of the Act. The project was referred to the Valuation Officer and the Valuation Officer submitted a report dated 19-02-2014. There are certain issues relating to date of completion of the project consisting of various buildings. Assessee did not complete Building A by the due date. Eventually, the AO, relying on the decision of Chennai Bench of the Tribunal in the case of Vishwas Promoters Pvt. Ltd. 12 ITD 263 and the decision of Special Bench of the Tribunal in the case of Brahma Associates and Others 122 TTJ 433 (SB) (Pune), denied the entire claim of deduction u/s.80IB(10) of the Act by holding as holder : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st Appellate proceedings, the CIT(A) after considering the submissions and the decisions relied on before him, concluded that the AO misinterpreted the factual and legal matrix of the said decision in applying the ratio to the appellants case under consideration. AO has only partly quoted the Para Nos. 123 to 125 of the said judgment. The decision in the case of Brahma Associates (supra) on the other hand directed to allow proportionate deduction for the residential units constructed fulfilling the conditions of section 80IB(10) of the Act. Eventually, the CIT(A) allowed the claim of pro-rata deduction u/s.80IB(10) to the assessee holding as under. Contents of Para No.8.5 of the order of CIT(A) are relevant and therefore, the same are extra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion by the AO, in the case of Brahma Associates Others (supra) is further fortified by the above judicial pronouncements referred to by the appellant and thus, denying the appellant proportionate deduction u/s.80IB(10) is not justified. These judicial decisions have given categorical findings, that for a housing project, if all the conditions as laid down in section 80IB(10) of the Act are fulfilled, the assessees are entitled to proportionate deduction and/or deduction on pro-rata basis for the part completed by it within the prescribed time limit. In the case of the appellant, it has been seen, that the appellant s project Faith commenced on 29-03-2007 and the first and second completion certificates for Building B , C and D were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irely a residential project, relying on the ratio of the decisions of the plethora of judicial pronouncements cited by the appellant. I do not find any reason, not to allow the appellants claim of proportionate deduction u/s.80IB(10) of the Act. The appellant is therefore entitled to proportionate deduction u/s.80IB(10) for the B , C , D buildings constructed and completed. The AO is directed to allow deduction u/s.80IB(10) of the Act on the profit earned by the appellant from the said buildings. The additional ground raised by the appellant is accordingly allowed. 5. Aggrieved with the order of CIT(A) the Revenue is in appeal before us with the grounds extracted above. 6. We heard both the sides on the limited issue of allowing ..... X X X X Extracts X X X X X X X X Extracts X X X X
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