INCOME TAX ACT, 1961

Section 80-IB

Deduction under section 80-IB - Computation of - Pro-rata deduction under section 80-IB(10) on a housing project developed by assessee -

Assessee was a builder and developer and promoted a housing project under the name “Eisha Loreals”. It claimed deduction under section 80-IB(10) in respect of aforesaid residential project. In assessment proceedings, AO observed that assessee had violated conditions of clauses (e) and (f) of section 80-IB(10) in respect of two flats. Consequently, AO denied the benefit of deduction under section 80-IB(10) on the entire project. Held: Undisputedly, assessee had violated conditions set out in clauses (e) and (f) of section 80-IB(10) in respect of only two flats. CIT(A) had granted proportionate deduction under section 80-IB(10) in respect of remaining housing project. High Court in the case of Viswas Promoters Private Limited v. ACIT [(2013) 81 DTR 68 (Chennai) : 2013 TaxPub(DT) 0489 (Mad-HC)] had held that assessee was eligible to claim proportionate relief on the units of a housing project satisfying the conditions laid down under section 80-IB(10). Tribunal in various decisions was consistently allowing proportionate deduction to the extent housing project complies with all the conditions under the provisions of section 80-IB(10).

REFERRED : Viswas Promoters Pvt. Ltd. v. Asstt. CIT (2013) 81 DTR 68 (Chennai) : 2013 TaxPub(DT) 0489 (Mad-HC) CIT v. Arun Excello Foundations Pvt. Ltd. (2013) 86 DTR 99 (Mad) : 2013 TaxPub(DT) 0373 (Mad-HC) CIT v. M/s. Vandana Properties (2012) 206 Taxman 584 (Bom) : 2012 TaxPub(DT) 0975 (Bom-HC) Asstt. CIT v. M/s. Eisha Concord Realtors [ITA No. 917/PUN/2017 for assessment year 2012-13 decided on 9-7-2019] and M/s. Namrata Developers v. Asstt. CIT [ITA Nos. 1974 to 1976/PUN/2016 And CO Nos. 40 to 42/PUN/2018, dt. 25-9-2018]

FAVOUR : In assessee's favour

A.Y. : 2012-13

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