Assessee Granted Deduction Under Section 80IB(10) for Assessment Years 2006-07 & 2007-08

The Tribunal allowed the Assessee's appeal, granting the deduction under section 80IB(10) for Assessment Years 2006-07 and 2007-08. The Tribunal found that the Assessee met the requirements for the deduction despite challenges to the measurements of the built-up area. The judgments were pronounced on 21-02-2014.

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Issues:
Allowability of deduction u/s 80IB(10) for A.Y. 2006-07 and 2007-08.

Analysis:
For A.Y. 2006-07, the Assessee, a firm engaged in developers and builders profession, filed returns declaring income. The AO denied deduction u/s 80IB(10) as Assessee was not considered a Developer but a Contractor. The CIT(A) upheld this decision. The Assessee contended that the project met all requirements, including plot size and built-up area. The DVO's measurements were challenged, arguing the area was below 1500 sq ft. The Tribunal noted the DVO's inability to physically verify the flats and relied on the Karnataka High Court's decision regarding the definition of "built-up area." As no contrary decision was presented, the Tribunal allowed the Assessee's appeal, granting the deduction.

For A.Y. 2007-08, the facts and issues mirrored those of A.Y. 2006-07. Following the same reasoning and conclusions, the Tribunal allowed the appeal for this year as well.

In both cases, the Tribunal found in favor of the Assessee, allowing the deduction u/s 80IB(10) for both A.Y. 2006-07 and 2007-08. The judgments were pronounced on 21-02-2014.

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