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The Tax Publishers2020 TaxPub(DT) 3885 (Karn-HC) : (2020) 429 ITR 0511 : (2020) 275 TAXMAN 0283 INCOME TAX ACT, 1961
Section 80-IB(10)
Clause (c) of section 80-IB(10) does not exclude the principle of proportionality in any manner, therefore, assessee was entitled to benefit of deduction under section 80-IB(10) proportionately in respect of residential units having built-up area less than or equal to 1,500 square feet.
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Deduction under section 80-IA - Allowability - Some of the residential units comprised in housing project having built-up area of more than 1500 sq.ft. -
Assessee was engaged in the business of construction, property development and real estate. It claimed deduction under section 80-IB(10). AO noticed that assessee-company in almost every block had a housing unit, which was more than 1500 square feet and approval from Bruhat Bangalore Mahanagara Palike (BBMP) had been obtained for the entire project and not for individual units. Accordingly, AO disallowed assessee's claim in entirety holding that section 80-IB(10) does not permit a claim on proportionate basis, only in respect of units, which were less than 1500 square feet. Held: On plain reading of clause (c) of section 80-IB(10) it becomes evident that same does not exclude the principle of proportionality in any manner, therefore, assessee was entitled to benefit of deduction under section 80-IB(10) proportionately in respect of residential units having built-up area less than or equal to 1,500 square feet.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2007-08
IN THE KARNATAKA HIGH COURT
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