TaxTMI 
TaxTMI 
2005 (8) TMI 329
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....ent and construction of housing projects. The assessee-firm undertook a housing project at Kothrud under the name of Bhaktiyog Co-operative Housing Society ('Bhaktiyog Society' for short). In the return for assessment year 2001-02 filed on 31-10-2001 the total income was shown at Rs. NIL after claiming deduction under section 80-IB(10) in respect of the entire net profit of Rs. 81,83,630. The Assessing Officer disallowed this claim and his order was confirmed by the CIT(A). The assessee has challenged the order of the CIT(A) in the present appeal. 3. Shri S.K Tyagi, the ld. A.R. submitted that the Bhaktiyog Society had purchased a piece of land admeasuring 4757 sq. mtrs.; that on a request of Maharashtra Academy of Engineering an....
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....sible built up area is 3643 sq. mtrs.; that from the letters of P.M.C. dated 4-2-2004 and 27-7-2004 it is clear that the built up area permissible on a plot of one acre would be 3646 sq. mtrs. as against the built up area allotted to the said society is 3800 sq. mtrs.; that it clearly proves that the corresponding plot area of the said society was higher than one acre as per paragraph 42.1 of the CBDT Circular No. 772, dated 23-12-1998; that the aforesaid provision had been inserted in the then section 80-IA with a view to promote investment in housing projects; that in interpreting the incentive provisions the approach of the Assessing Officer should be liberal and, therefore, the claim of the assessee for deduction under section 80-IB(10)....
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....any business referred to in sub-sections (3) to (11), (11A) and (11B) (such business being hereinafter referred to as the eligible business), there shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total income of the assessee, a deduction from such profits and gains of an amount equal to such percentage and for such number of assessment years as specified in this section. 80-IB. (10) (a) ** (b) the project is on the size of a plot of land which has a minimum area of one acre." 6. The elementary principle of interpreting or construing a statute is to gather the mensor sententia legis of the Legislature. Where the language is clear, the intention of the Legislature is t....
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....ppears that in order to enable these five housing societies to fulfil this condition, the MAEER agreed, as part of the compromise arrangement, to allow part of its land to be used as open space by these housing-societies. The condition with regard to reserving 10 per cent of the plot area as open space was relaxed in the case of these housing-societies in respect of the plots finally allotted to them as a result of the compromise and after MAEER agreed to make part of its land available to the five societies for being used as open space. 8. Shri Tyagi, the ld. A.R. repeatedly emphasized saying that the area of 3800 sq. mtrs. together with the area made available by MAEER for being used as open space exceeded one acre and, therefore, the ....