Section 80IB(10) deduction remains available where separately approved residential units are later merged by the purchaser.

Deduction under section 80IB(10) could not be refused merely because a purchaser later merged two adjacent residential units into one larger unit. Each unit had been approved by the local authority with built-up area within the statutory limit and was independently usable as a residential unit. The amended restriction on allotment of multiple units to specified family members was not applicable for the relevant assessment year, so the later merger did not affect eligibility for the pre-amendment period. The deduction was therefore available on these facts.

---

---

Issues: Whether deduction under section 80IB(10) could be denied on the ground that two adjacent residential units, each within the prescribed built-up area as per the approved plan, were combined by the purchaser into a larger unit.

Analysis: The appellate order followed the Tribunal's earlier decision in the assessee's own case. It was noted that, for the relevant assessment year, the amended restriction regarding allotment of multiple units to specified family members was not applicable. The decisive factor was that each unit, as approved by the local authority, had a built-up area below the statutory limit and was independently capable of use as a residential unit. The subsequent merger of two separately approved units by the purchaser did not alter the position for the pre-amendment period.

Conclusion: Deduction under section 80IB(10) could not be denied on this ground, and the issue was decided in favour of the assessee.

---