Court affirms deduction for residential-commercial project despite violation of precondition (10)

The court upheld the Tribunal's decision to allow the deduction under section 80IB(10) for a project involving a residential-cum-commercial complex, despite violating a precondition under the Income Tax Act. Additionally, the court affirmed the Tribunal's ruling in favor of the Assessee claiming the deduction for a project commenced after the specified date, based on revised plans sanctioned later, dismissing the Revenue's appeal.

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Issues involved: The issues involved in the judgment are:
1. Whether the Tribunal was right in allowing the deduction u/s 80IB(10) despite the construction of a residential-cum-commercial complex, violating a precondition under the Income Tax Act, 1961Rs.
2. Whether the Tribunal was correct in allowing the deduction u/s 80IB(10) for a project where the commencement certificate was issued before the specified dateRs.

Issue 1:
The Revenue raised a question regarding the deduction u/s 80IB(10) for a project involving a residential-cum-commercial complex, which was in violation of the Act. The court referred to a previous decision and held that the question was already answered against the Revenue, citing the case of CIT vs. M/s Brahma Associates.

Issue 2:
The Assessee claimed deduction u/s 80IB(10) for a project purchased from a third party, which commenced in March 2001. The Assessing Officer disallowed the claim as the project was originally sanctioned before the specified date of 1st October 1998. However, the ITAT found that the project actually commenced after the specified date, based on revised plans sanctioned in 2002, despite the original plans being approved earlier. The court upheld the ITAT's decision as a factual finding, dismissing the appeal with no costs.

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