Case law Section 80IB(10)

[Anand Barpute]

Dear Sir I want your guidance Regarding section 80IB(10) of Income Tax.  My client is doing the project under it in Latur where the norm for build up area is 1500 sq feet per banglow . He is building banglow of 1500 sq feet on plot of 1500sq feet each in more than 1 acre land. ( Muncipal permission taken for such 100 banglows ) He has given a 2 plots of 1500 sq feet totalling to 3000 sq feet to one customer with construction up to only 1500 sq feet in one plot & anotherplot left vacant on the demand of customer. The said customer has made green garden on the adjusant plot of 1500 sq feet Assessing officer deny benefit u/s section 80IB(10) to the builder on the ground of non adherence to muncipal plan ( muncipal permission taken for 100 banglows and build only 99, one plot left vacant) How to defend Is thare any case laws on section 80IB(10) of IT Act ? Please guide us Thanks & Regards Anand S Barpute

[Surender Gupta]

I believe that the sole ground of the AO that municipal plan taken for 100 bang low and build only 99 is not tenable under the the provision of the Income Tax. If other conditions are satisfied and finally municipal coporation gives completion certificate after considering the modified plant, the benefit of section 80IB(10) will be available.

AI Summary

Tax Benefits Dispute: Builder Challenges Denial Under Section 80IB(10) Due to Plot Sale and Municipal Plan Deviation A query was raised regarding Section 80IB(10) of the Income Tax Act, where a builder in Latur constructed bungalows on plots of 1500 sq feet. The issue arose when a customer was sold two plots, with one left vacant for a garden, leading the assessing officer to deny tax benefits due to deviation from the municipal plan of 100 bungalows. The respondent argued that the denial is not justified if other conditions are met and a completion certificate is issued by the municipal corporation, suggesting that the tax benefits should still apply.