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| The Tax Publishers2020 TaxPub(DT) 3983 (Mad-HC) INCOME TAX ACT, 1961
Section 80-IB(10)
Where section 80-IB(10) speaks about the residential unit having a maximum built-up area of 1500 sq.ft. to claim deduction and it, however, clearly states that it will not include common area shared with other residential units, therefore, there was no justification in including the car park in definition of the built-up area of residential unit for purpose of determining the maximum built-up area and assessee was entitled to benefit of deduction under section 80-IB.
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Deduction under section 80IB(10) - Specific definition for term 'built-up area' - Car parking space - Inclusion thereof in
Issue arose for consideration as to whether Tribunal was right in holding that the assessee is entitled for deduction under section 80-IB, even though assessee did not include car parking area with residential flats sold to buyers for the purpose of determining the maximum built-up area. Held: Section 80-IB(10) speaks about the residential unit having a maximum built-up area of 1500 sq.ft. to claim deduction and 'built-up area' was defined as inner measurements of residential unit at the floor level, including the projections and balconies, as increased by thickness of the walls, meaning thereby, that the actual residential portion of property. It, however, clearly states that it will not include common area shared with other residential units. There was no justification in including the car park in definition of built-up area of the residential unit for the purpose of determining the maximum built-up area. Assessee was entitled to benefit of deduction under section 80-IB.
Followed:CIT v. Subba Reddy (HUF) (2015) 373 ITR 105 (Mad) : 2015 TaxPub(DT) 2071 (Mad-HC) ACIT v. C. Rajini 2011 TaxPub(DT) 1631 (Chen-Trib).
REFERRED :
FAVOUR : In assessee's favour
A.Y. : 2005-06
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