Road acquisition area qualifies for deduction under section 80IB(10) - Tribunal decision

The Tribunal dismissed the Revenue's appeal challenging the inclusion of road acquisition area in the plot area for claiming deduction under section 80IB(10) of the Income-tax Act, 1961. The Tribunal upheld that the road acquisition area should be considered part of the plot area, meeting the statutory requirement of a minimum one-acre plot for the deduction. This decision aligned with previous Tribunal orders related to the same assessee for assessment years 2008-09 and 2009-10, establishing a consistent interpretation of the relevant provisions.

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Issues Involved:
Claim of deduction under section 80IB(10) of the Income-tax Act, 1961 based on the area of the plot for a housing project.

Analysis:
The appeal filed by the Revenue challenged the order of CIT(A)-6, Pune, regarding the assessment year 2011-12 under section 143(3) of the Income-tax Act, 1961. The main issue raised by the Revenue was whether the road acquisition area should be considered as part of the plot area for calculating the minimum one acre required for claiming deduction under section 80IB(10) of the Act. The Tribunal noted that the assessee had a plot area of 4074 sq.mtrs, out of which a portion was reserved for road acquisition. The Tribunal referenced previous orders related to the same assessee for assessment years 2008-09 and 2009-10, where it was established that the road acquisition area was indeed part of the housing project area. The Tribunal concluded that the road acquisition area should be included in the calculation of the plot area for claiming the deduction under section 80IB(10) of the Act. As the case was already covered by previous Tribunal orders, the appeal of the Revenue was dismissed.

The Tribunal emphasized that the road acquisition area, even though initially excluded, was an integral part of the housing project area. It was noted that the sanctioned building plan specified the entire plot area, including the area reserved for road acquisition. The Tribunal highlighted that the basic condition of developing the housing project on a minimum area of one acre was met by considering the road acquisition area as part of the plot area. The Tribunal referred to previous decisions in the assessee's case for assessment years 2008-09 and 2009-10, where similar conclusions were reached. Therefore, it was established that the road acquisition area should be factored into the calculation of the plot area for claiming the deduction under section 80IB(10) of the Act.

In conclusion, the Tribunal dismissed the appeal of the Revenue, as the issue regarding the inclusion of road acquisition area in the plot area for claiming deduction under section 80IB(10) had already been settled in previous Tribunal orders related to the same assessee. The Tribunal reiterated that the road acquisition area formed an essential part of the housing project area and fulfilled the statutory requirement of a minimum one-acre plot for claiming the deduction. The decision was based on a consistent interpretation of the relevant provisions and previous judicial precedents in the assessee's favor.

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