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TMI Blog2023 (8) TMI 1185X X X X Extracts X X X X X X X X Extracts X X X X ..... block is a housing project in itself for the purpose of claiming deduction u/s. 80IB(10). Also in the case of Vertex Homes (P.) Ltd. [ 2015 (9) TMI 549 - ITAT HYDERABAD] held that the assessee, a builder, had not completed construction of all blocks of housing project, within stipulated period, would not deprive assessee from availing of deduction u/s. 80IB(10) in respect of each of completed block on stand alone basis. Thus separate planning permission obtained by the assessee for each Block separately and after construction obtained separate Building Usage permission from the Local Authority within 5 years period, therefore the assessee cannot be denied the claim of exemption u/s. 80IB(10) - Decided in favour of assessee. - Shri Waseem Ahmed, Accountant Member And Shri T.R. Senthil Kumar, Judicial Member For the Assessee : Shri Sudhir Mehta, A.R. For the Revenue : Shri Pushpendra Singh Chaudhary, CIT And Shri Rakesh Jha, Sr. D.R. ORDER PER : T.R. SENTHIL KUMAR, JUDICIAL MEMBER:- These two appeal are filed by the Assessee as against separate appellate orders both dated 09.07.2019 passed by the Commissioner of Income Tax (Appeals)-8, Ahmedaba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iod. 7.1. The Brief facts of the case is that the assessee developed 11 Blocks of residential housing projects under the scheme of Takshashila Colonial starting with Block Nos. C to Q. The assessee obtained separate planning permission for construction of residential building from the local authority namely Ahmedabad Municipal Corporation (AMC) and the date of commencement of the project and also completion of construction Building Usage permission obtained from AMC for the 8 Blocks (except) 3 Blocks namely E, F G are as follows: Sr. No. Block Nos. Commencement Letter dated B.U. Permission dated 1 Block-C 23-11-2006 31-07-2009 2 Block-D 10-08-2009 19-03-2011 3 Block-E 10-08-2009 - 4 Block-F 10-08-2009 - 5 Block-G 10-08-2009 - 6 Block-L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssued by the AMC for Block Nos. C, D, L, M, N, O, P Q. Thus the Ld. Counsel for the assessee submitted the Lower Authorities failed to consider that separate building planning permission obtained by the assessee for each Block as separate housing project and completed the same less than five years period and therefore eligible for claim of deduction u/s. 80IB(10) of the Act. The Ld. Counsel further submitted that the assessee has not claimed deduction u/s. 80IB(10) for Block Nos. E, F G and the Lower Authorities are not correct in denying the deduction u/s. 80IB(10) of the Act for the remaining Blocks of the housing project. 10.1. In this connection, the Ld. Counsel relied upon Hon ble Madras High Court Judgment in the case of Viswas Promoters (P.) Ltd. Vs. ACIT [2013] 29 taxmann.com 19 (Madras) and Hyderabad Tribunal decision in the case of Vertex Homes (P.) Ltd. Vs. DCIT [2015] 62 taxmann.com 285 (Hyderabad-Trib.) 10.2. Per contra, the Ld. D.R. appearing for the Revenue supported the order passed by the Lower Authorities and pleaded to uphold the same. 11. We have given our thoughtful consideration and perused the materials available on record. It is an admitted fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ins from industrial undertakings or enterprises engaged in the development of infrastructural facilities such as roads, bridges and other structure as regards the grant of deduction in respect of development and construction of a housing project. Section 80IB is a specific provision in respect of profits and gains from undertakings engaged in developing and constructing housing projects other than infrastructure development undertakings. Thus, housing projects considered herein under Section 80IB refers to any building other than road, bridge or other structure. Thus, going by the definition of housing project to mean the construction of any building and the deduction under Section 80IB of the Act is hundred per cent of the profits derived in the previous year relevant to the assessment year from such housing project complying with the condition, each block in the larger project by name Agrini and Vajra , has to be taken as an independent building and hence a housing project, for the purpose of considering a claim of deduction. Section 80IB(10) begins by stating: (10) The amount of deduction in the case of an undertaking developing and building housing projects approve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar as Ld. CIT(A)'s observation that the housing project should have been completed by 31/03/2011, we do not find the same to be acceptable. As assessee's housing project has been approved after 1st April, 2005, the stipulated period within which assessee has to complete the project is five years. Assessee having completed blocks A, B F within five years from the date of approval, in our view, it is eligible to claim deduction u/s 80IB(10) in respect of blocks A, B F. 11.3. Respectfully following the above judicial precedents and separate planning permission obtained by the assessee for each Block separately and after construction obtained separate Building Usage permission from the Local Authority within 5 years period, therefore the assessee cannot be denied the claim of exemption u/s. 80IB(10) of the Act. Thus the order passed by the Lower Authorities on this issue is hereby set aside and the Assessing Officer is directed to allow the claim of deduction u/s. 80IB(10) of the Act amounting to Rs. 31,64,266/-. Thus the ground raised by the Assessee is hereby allowed. 12. In the result, the appeal filed by the Assessee in ITA No. 1401/Ahd/2019 is allowed. Order ..... X X X X Extracts X X X X X X X X Extracts X X X X
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