Tribunal confirms deductions for Kumar Kruti and Kumar Shantiniketan projects under Section 80IB(10).

The Tribunal upheld the CIT(A)'s decisions, directing the Assessing Officer to re-calculate deductions for projects Kumar Kruti and Kumar Shantiniketan under section 80IB(10). The Revenue's appeal challenging the allowance of deductions was dismissed. The Tribunal determined that both projects were eligible for pro-rata deductions for eligible units within specified area limits, while disallowing deductions for units exceeding the limit. The decisions were guided by previous rulings and consistent interpretation of Section 80IB(10).

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Issues:
1. Allowance of deduction under section 80IB(10) for projects Kumar Kruti and Kumar Shantiniketan.

Analysis:
The appeal filed by the Revenue challenged the order of CIT(A) allowing the assessee's claim of deduction under section 80IB(10) for projects Kumar Kruti and Kumar Shantiniketan for the assessment year 2011-12. The Revenue contended that the CIT(A) erred in interpreting the provisions of Section 80IB(10) and in not considering the completion status of the projects in accordance with the Act. The Revenue argued that the projects did not meet the conditions specified in the Act, particularly in terms of project completion timelines and maximum permissible built-up area.

The first issue addressed the deduction claim for project Kumar Shantiniketan, where the Assessing Officer disallowed the deduction due to certain flats exceeding the prescribed area limit of 1500 sq. ft. However, the CIT(A) allowed a pro-rata deduction under section 80IB(10) for eligible units within the covered area limit. The Tribunal, following previous rulings, directed the Assessing Officer to re-calculate the deduction, maintaining consistency with earlier decisions.

The second issue focused on the deduction claim for project Kumar Kruti, which was initially denied due to being part of a larger project and not meeting the completion deadline. The Tribunal, after examining the facts, determined that Kumar Kruti was an independent project with a separate building plan approval. Consequently, the Tribunal upheld the assessee's entitlement to a pro-rata deduction under section 80IB(10) for eligible units within the specified area limit, while disallowing the deduction for units exceeding the limit.

The Tribunal's decisions in the earlier years and the consistency in interpreting the provisions of Section 80IB(10) guided the resolution of both issues. The Tribunal upheld the CIT(A)'s orders directing the Assessing Officer to re-calculate the deductions for both projects, Kumar Kruti and Kumar Shantiniketan. Ultimately, the Tribunal dismissed the Revenue's appeal, affirming the CIT(A)'s decisions in allowing the deduction claims under section 80IB(10) for the mentioned projects.

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