INCOME TAX ACT, 1961

Section 80-IB(10)

Deduction under section 80-IB(10) - Allowability - Profits derived from sale of car parking space and preferential location charges (PLC) and Height Escalation Charges (HEC) -

Assessee apart from residential units, also constructed and sold car parking spaces to purchasers of such residential units and realized the prices of such car parking. AO disallowed claim of deduction under section 80-IB(10) attributable to such car parkings on the ground that the Act has not contemplated such deduction and deduction is confined to residential units only. Also, AO disallowed deduction as regards preferential location charges (PLC) and Height Escalation Charges (HEC). Held: Profits derived from sale of car parking space as well as preferential location charges (PLC) & Height Escalation Charges (HEC) were part and parcel of housing projects and since these are integral part of housing project, profit derived from sale of car parking space as well as on PLC & HEC was eligible for deduction under section 80-IB(10) since deduction under section 80-IB is available in respect of eligible housing project.

Supported by CIT v. Purvankara Projects Ltd. [Income Tax Appeal Nos. 4976, 4977 of 2010, dt. 25-7-2011], South City Projects (Kolkata) Ltd. v. ACIT 2019 TaxPub(DT) 4858 (Kol-Trib), Asstt. CIT v. Vaman Estate [ITA No. 7570/Mum/2011, dt. 19-10-2012].

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2012-13

INCOME TAX ACT, 1961

Section 37(1)

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