INCOME TAX ACT, 1961

Section 80-IB(10)

Deduction under section 80-IB(10) - Proportionate deduction under section 80-IB(10) - Valuation Officer reported the built-up area of Bunglows/Row Houses -

Assessee was engaged in the business of developing housing projects and claimed deduction under section 80-IB(10). To verify the claim of assessee, AO referred the matter to the Valuation Officer. According to AO, Valuation Officer reported the built-up area of Bunglows/Row Houses are more than 1500 sq.ft. and accordingly, the said report has been confronted to assessee. AO found submissions made by assessee including the alternative plea not acceptable and held assessee was not entitled to claim deduction under section 80-IB(10) for the violations made in construction of Bunglow/Row Houses and disallowed the same. CIT(A) held that assessee was entitled to claim proportionate deduction under section 80-IB(10) relating to eligible units. Held: CIT(A) in his order discussed the issue taking the reference to the decision of the Tribunal in the case of M/s. D.S. Kulkarni Developers Ltd. (ITA Nos. 723 to 725/PUN/2013, Order, dated 31-7-2014) wherein pro-rata deduction under section 80-IB(10) was allowable for eligible units of assessee. Therefore, in view of the findings recorded by CIT(A), there was no infirmity in order of CIT(A) and it was justified.

Followed:M/s. D.S. Kulkarni Developers Limited in ITA Nos. 723 to 725/PUN/2013 Order, dated 31-7-2014 Mudhit Madanlal Gupta v. CIT reported in 9 taxmann.com 235

REFERRED :

FAVOUR : In assessee's favour

A.Y. : 2011-12

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