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Tribunal Upholds CIT(A) Decision on Plot Size Calculation for 80IB(10) Deduction The Tribunal upheld the CIT(A)'s decision, emphasizing the inclusion of road acquisition area in the plot size calculation for claiming deduction u/s ...
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Tribunal Upholds CIT(A) Decision on Plot Size Calculation for 80IB(10) Deduction
The Tribunal upheld the CIT(A)'s decision, emphasizing the inclusion of road acquisition area in the plot size calculation for claiming deduction u/s 80IB(10) and dismissed the Revenue's appeal accordingly.
Issues involved: Interpretation of provisions u/s 80IB(10) of the Income Tax Act, 1961 regarding the calculation of minimum area for claiming deduction and inclusion of road acquisition area in the plot area.
Summary: The appeal filed by the Revenue challenged the order of the CIT(A)-V, Pune for Assessment Year 2009-10. The issue revolved around the calculation of the minimum area for claiming deduction u/s 80IB(10) and the inclusion of road acquisition area in the plot area.
The Revenue contended that the road acquisition area should not be considered as part of the plot area for calculating the minimum 1 acre required for deduction u/s 80IB(10). The Assessing Officer disallowed the deduction based on the exclusion of road reservation area, leading to the plot size falling below the required threshold.
In appeal, the CIT(A) allowed the claim of the assessee, emphasizing that the area of the plot should include the road acquisition area as per the registered development agreement and sanctioned plan. The Tribunal, in line with its decision for the preceding assessment year, upheld the CIT(A)'s order, stating that the road acquisition area should not be excluded from the plot area calculation for claiming the deduction u/s 80IB(10).
The Tribunal found no infirmity in the CIT(A)'s order, as it followed the precedent set in the earlier assessment year and no contrary material was presented. Consequently, the appeal filed by the Revenue was dismissed, affirming the allowance of deduction for the housing project "Prem Aangan."
In conclusion, the Tribunal upheld the CIT(A)'s decision, emphasizing the inclusion of road acquisition area in the plot size calculation for claiming deduction u/s 80IB(10) and dismissed the Revenue's appeal accordingly.
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