9911796707
TMI Blog2022 (7) TMI 124X X X X Extracts X X X X X X X X Extracts X X X X ..... vidence to demonstrate the nature of extra work. Here, it is relevant to note that section 80IB(10) provides deduction at 100% of profit derived from the housing project which fulfils the requisite conditions. It is only the profit from the eligible project which qualifies for deduction. If the developer also undertakes certain other works unconnected with development of project and charges separately from customers, that income cannot qualify for the deduction. Thus, the examination of nature of work done and the resultant income becomes sine qua non for granting or not granting of deduction u/s.80IB(10). Here is a case in which the AO did not dispute the otherwise eligibility of deduction u/s. 80IB(10) on the Khinvasara Fort . The assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d professional expenses involved in these projects, having been allocated to the Fort project eligible for deduction u/s.80IB(10) - If disallowance of any expenditure from the eligible housing project is made, it means that the income from it would correspondingly increase, resulting into higher amount of deduction u/s.80IB(10) also. Out of total Legal and professional expenses incurred by the assessee share of the expenses allocated to eligible project - Applying the same proportion to the disputed payment of Rs.11.00 lakh, the share of the Fort project in such total amount disallowed comes - As the eligible project claimed deduction for this sum, which got disallowed by the AO, the amount of deduction u/s. 80IB(10) will accordingly have t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itted position that the assessee is otherwise eligible for deduction u/s.80IB(10) in respect of one of its projects, namely, 'Khinvasara Fort'. The AO did not dispute the otherwise allowability of deduction of income from the 'Khinvasara Fort' project, but observed that the assessee could not furnish any evidence as to the nature of 'extra work' on which the deduction was also claimed. Similar position remained before the ld. CIT(A) as well that the assessee could lead no evidence to demonstrate the nature of extra work. Here, it is relevant to note that section 80IB(10) provides deduction at 100% of profit derived from the housing project which fulfils the requisite conditions. It is only the profit from the eligible project which qualifie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esigning, drafting and consultancy charges for Resort Project "Nirvana" at Shoolibanjan, Aurangabad. Since the Nirvana project was not eligible for deduction u/s.80IB(10) and there was no revenue from the `Nirvana' project, the AO disallowed this sum. The ld. CIT(A) countenanced the view of the AO. 7. I have heard both the sides and perused the relevant material on record. The assessee has furnished a list of the projects undertaken by it along with the relevant figures of sale/income/expenses for the year, at page 16 of the paper book. The payment under consideration is of Rs.11.00 lakh paid by the assessee to Ms. Monali Mutha and Mr. Sujit S. Mutha for interior designing. The architect has mentioned the name of 'Nirvana' project. However ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
