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TMI Blog2020 (3) TMI 1237X X X X Extracts X X X X X X X X Extracts X X X X ..... hen the assessee claimed the deduction with respect to the residential units, which are having built up area less than 1500 sq.ft, the condition laid down under section 80IB(10)(c) is fulfilled. Therefore, whether such development permission includes the area for the residential units, which are more than 1500 sq.ft. would not be relevant for deciding eligibility to deducting under section 80IB(10) of the Act. In view of concurrent findings of fact arrived at by the CIT(A) and the Tribunal, there is no legal infirmity in the impugned orders of allowing deduction under section 80IB(10) of the Act. - Decided against revenue - R/TAX APPEAL NO. 25 of 2020 - - - Dated:- 2-3-2020 - MR. J.B. PARDIWALA AND MR. BHARGAV D. KARIA JJ. Appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e was not sole owner of the land on which the housing project was constructed. Accordingly, the Assessing Officer disallowed the deduction claimed by the assessee under section 80IB(10) of the Act, 1961. The Assessing Officer observed that in respect of the Pratham Vistas, out of the layout plan for 158 residential units, 55 residential units were having a built up areas of 2199 sq.ft., which exceeded, the prescribed built up areas of 1500 sq.ft as envisaged under section 80IB(10)(c) of the Act. 2.4 The assessee being dissatisfied with the assessment order preferred an appeal before the CIT(A). The CIT(A) allowed the appeal after following the decision of this Court in the case of CIT Vs. Radhe Developers (2012) 341 ITR 403 (Guj.). ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Pratham Properties and copy of the Development Agreement entered into between the Land Owners and Pratham Properties on which 'Pratham Meadow' scheme is developed by Pratham Properties. The appellant has also stated that M/s. Pratham Properties is assessed to income tax under PAN AAHFP5012C and has furnished copies of the said firm's return of income filed for A.Y. 2010-11, 2011-12 and 2012-13 together with audited accounts for the year ended 31.03.2010, 31.03.2011 and 31.03.2012. A separate profit loss account has also been furnished in respect of 'Pratham Meadows' scheme of Pratham Properties to show that the entire expenditure for the project is incurred by Pratham Properties and the income on sale of residential un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y, the Assessing Officer of both the assessee is the same. From the examination of the evidence furnished by the Appellant and in view of the submissions that revenues in respect of the scheme Pratham Vistas are accounted for by the appellant and that of 'Pratham Meadows' is accounted for by M/s. Pratham Properties, I hold that Pratham Meadows consisting of 55 residential units is a separate project developed by another assessee and further hold that the Appellant firm is entitled to deduction under section 80IB(10) in respect of the 103 residential units in 'Pratham Vista' project which fulfils the criteria prescribed as to the size of the plot, the built up area of each residential unit being of less than 1500 sq. ft. 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e case, the learned ITAT has erred in law and on facts in upholding the decision of the learned CIT(A) allowing deduction u/s.80IB(10) of the Income Tax Act, 1961 to the assessee on a pro rata basis when there is no such provision under the stature permitting the same? 4. The learned senior standing counsel Mr. V.K. Patel appearing for the appellant submitted that the Assessing Officer has considered the fact that there was only one commencement certificate/Raja Chhiththi for the development of 158 units, which included the project consisting of 103 units, which were developed by the assessee and for other 55 units developed by M/s. Pratham Properties. Therefore, the assessee is not entitled to deduction under section 80IB(10) in view o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t day of April, 2005, within five years from the end of the financial year in which the housing project is approved by the local authority.] Explanation. For the purposes of this clause, (i) in a case where the approval in respect of the housing project is obtained more than once, such housing project shall be deemed to have been approved on the date on which the building plan of such housing project is first approved by the local authority; (ii) the 7date of completion of construction of the housing project shall7 be taken to be the date on which the completion certificate in respect of such housing project is issued by the local authority; (b) the project is on the size of a plot of land which has a minimum area of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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