80IB(10) exemption ?

[hubert fernandes]

We have availed deduction u/s 80ib(10).The assesse has fulfilled all conditions u/s 80IB(10).ie land criterria,approval date,time frame for project completion and builindg standalone residential units for less than 1500 sq ft. the AO has disallowed the claim by virtue of oath statement recored u/s 131(1) wherein the purchaser has stated that "during the stage of construction , the builder at request of the purchaser have agreed to combine the adjacant unit" . There is no documentary evidence to support this claim , the very basis on which the AO has made the addition.The Assesse possesses the evidence incl the completion cert/occupance cert as issued by loacl authorities for stand alone residentioal units.Can the AO deny us the entire exemption , are there any case laws vis a vis the above factual position.

AI Summary

Deduction under section 80IB(10) applies pro rata where some residential units exceed size limit; full denial unwarranted.
Deduction under section 80IB(10) is contested after a purchaser's statement under section 131(1) alleged combination of adjacent units increasing unit sizes; the assessee holds completion and occupancy certificates for standalone residential units. Tribunal precedents indicate the exemption may be allowed on a pro rata basis for units that meet the statutory size requirement rather than being wholly denied, presenting a conflict between municipal documentary approvals and an oral statement as evidentiary bases.