Appeal Dismissed: Builder's Section 80IB(10) Claim Upheld

The Revenue's appeal against the disallowance of the assessee's claim under section 80IB(10) of the Act was dismissed. The CIT(A)'s decision to allow the claim was upheld as the builder met all conditions required by the law, and there was no obligation to fully utilize the permissible FSI for the deduction. The Tribunal found the claim valid, leading to the dismissal of the Revenue's appeal and the cross objections, affirming the CIT(A)'s decision.

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Issues:
1. Disallowance of claim u/s.80IB(10) of the Act by the AO.
2. Completion of housing project at Chunchale Shivar before the deadline.
3. Disagreement between CIT(A) and Assessing Officer regarding claim fulfillment.

Analysis:
1. The appeal was filed by the Revenue against the CIT(A)'s order regarding the disallowance of the assessee's claim u/s.80IB(10) of the Act. The Assessing Officer contended that the project was not completed by the deadline as the entire buildable area was not utilized during the year, leading to the disallowance of the claim of Rs.33,49,895/-.

2. The CIT(A) allowed the claim of the assessee, stating that all conditions u/s.80IB(10) were fulfilled. The size of the plot, approval date, built-up area, and completion date were all in compliance with the requirements. The Assessing Officer's argument that the entire permissible FSI should be consumed for the deduction was rejected, as there is no such stipulation in the law.

3. The Tribunal found that the builder has the discretion to consume the FSI on the plot, and the law does not mandate the full utilization of FSI for claiming the deduction u/s.80IB(10). As the assessee met all the main conditions of the section, the claim was deemed valid. The CIT(A) was justified in directing the Assessing Officer to allow the claim, as there was no legal basis for rejecting it. Consequently, the appeal filed by the Revenue was dismissed.

4. The Cross Objection, supporting the CIT(A)'s order, became inconsequential due to the decision in favor of the assessee in the Revenue's appeal. Thus, both the appeal of the Revenue and the cross objections were dismissed, upholding the CIT(A)'s decision.

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