Separate housing projects for section 80IB(10): independently sanctioned and completed components can qualify for deduction.

Independently sanctioned and identifiable components of a larger development may be treated as separate housing projects for deduction under section 80IB(10). Where residential buildings and amenity space were approved under separate building plans, the common layout did not control project identity, so the amenity space could not be clubbed with the housing project and deduction was not denied on that basis. Likewise, deduction could be claimed for the completed parking + 7 floors segment of Meghmalhar Phase I, because the statute was applied to the specific completed block satisfying the conditions, while other sanctioned but unfinished components were irrelevant. The assessee's deduction claim succeeded on both projects.

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Issues: (i) whether amenity space forming part of the DSK Sundarban layout was an independent project so as not to deny deduction under section 80IB(10); (ii) whether Meghmalhar Phase I, to the extent of the buildings sanctioned for parking + 7 floors, constituted a separate eligible housing project for deduction under section 80IB(10).

Issue (i): whether amenity space forming part of the DSK Sundarban layout was an independent project so as not to deny deduction under section 80IB(10).

Analysis: The residential buildings and the amenity space were sanctioned under separate building plans, though there was a common layout plan. The common layout was treated as only a broad development plan and not as determinative of the project identity for section 80IB(10). Since the amenity space was separately sanctioned and independently developed, it could not be clubbed with the residential project merely because both were shown in one layout.

Conclusion: The amenity space was an independent project and deduction under section 80IB(10) could not be denied on that basis; the conclusion was in favour of the assessee.

Issue (ii): whether Meghmalhar Phase I, to the extent of the buildings sanctioned for parking + 7 floors, constituted a separate eligible housing project for deduction under section 80IB(10).

Analysis: The Tribunal held that the expression 'housing project' is not confined to the entire sanctioned layout and that the assessee may claim deduction with reference to the portion actually completed and satisfying the statutory conditions. The buildings sanctioned for parking + 7 floors were completed and fulfilled the conditions, while the other sanctioned components did not form part of the eligible project claimed. The row houses and unfinished portions were therefore irrelevant to the deduction claimed for the completed block.

Conclusion: The completed parking + 7 floors segment of Meghmalhar Phase I constituted an independent eligible housing project and the deduction under section 80IB(10) was allowable; the conclusion was in favour of the assessee.

Final Conclusion: The assessee's claim for deduction under section 80IB(10) succeeded on both projects, as separately sanctioned or separately identifiable completed components were treated as independent eligible projects.

Ratio Decidendi: For section 80IB(10), independently sanctioned and identifiable building components of a larger development may be treated as separate housing projects, and eligibility is to be tested with reference to the specific project or completed portion for which deduction is claimed.

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