TaxTMI 
TaxTMI 
2010 (9) TMI 677
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....ned permission for construction of eight blocks in Seven Acres and 39 Ghuntasection Assessee has also paid land development charges for the entire land. However, the assessee constructed only two blocks of residential apartments comprising of 120 flatsection Out of two blocks, assessee completed construction of one block, namely, Daffodils Block during the assessment year under consideration. The second block was completed only in March, 2007. Referring to the provisions of SECTION80IB, the learned Departmental Representative submitted that the assessee is eligible for deduction under SECTION80IB on completion of the entire project. Since assessee has not completed the entire project and what was completed during the assessment year under consideration is only one block of residential apartments, the assessee is not eligible for deduction under SECTION80IB of the Act. Learned representative placed his reliance on the judgment of the Madras High Court in the case of Visvas Promoters (P) Ltd. V.ITAT and Another (323 ITR 114) and submitted that unless the assessee completed the entire project, deduction under SECTION80IB cannot be allowed. Learned Departmental Representative also plac....
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....as obtained only for the purpose of two residential blocks and one of the two blocks was completed as per the certificate given by the local body. Therefore, the assessee has to be necessarily allowed deduction as per the statutory provisions of the Act. Referring to the decision of the Madras High Court in the case of Visvas Promoters (P) Ltd. (Supra), learned representative submitted that that case before the High Court arose out of the application filed by the assessee under SECTION254(2) of the Income-tax Act for rectification of the order of the Tribunal. Therefore, the finding if any recorded by the Madras High Court in the context of rectifying a mistake under SECTION254(2) will not be applicable while considering the present appeal on meritsection Learned representative also placed reliance on the foloowing decisions; (a) CIT V.SECTIONV.Dalappa and Sons (176 ITR 455)-A.P. (b) CIT V.Dredging Corporation of India (174 ITR 682)-A.P. (c) CIT V.G.SECTIONAtwal and Co. (GUA) (254 ITR 592)-Cal. (d) CIT V.Sudarshan Chemcals Ltd. (245 ITR 769)- Bom. 5. We have considered the rival submissions on either side and also considered the material available on record. No doubt....
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....B(10) of the Act. Therefore, we uphold the order of the CIT(A) and reject the grounds of the Revenue on this issue. 6. Revenue has taken one more ground with regard to area of each housing unit constructed by the assessee. We have heard the learned Departmental Representative and the learned representative for the assessee. Admittedly, all the residential units constructed by the assessee are below 1,500 sq. ft each. It is not brought on record that the assessee has constructed any of the units which exceeded 1500 sq. ft. Even if the assessee constructed any of the units which exceeded 1500 sq. ft., in our considered opinion, the assessee is eligible for deduction in respect of all the units of the residential block, which are less than 1500 sq. ft each excluding the unit which exceeded 1500 sq. ft. Therefore, we do not find any infirmity in the order of the CIT(A) on this aspect.... 7. Next ground of appeal of the Revenue is with regard to non-deduction of tax under SECTION194C of the Act. During the course of hearing, the Learned Departmental Representative submitted that he is placing reliance on the order of the Assessing Officer on this aspect. On the contrary, the learn....
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....ssions and perused the orders of the lower authorities in the light of the material available on record. The CIT(A) after considering the decision of this Tribunal in the case of Bhagyanagar Constructions P. Ltd. (99 ITD 236), found that deduction under SECTION80IB(10) is available to the assessee with regard to the profits of the assessment year under consideration only. Accordingly, the CIT(A) directed the Assessing Officer to work out the sales relating to assessment year 2005-06 and give deduction under SECTION80IB on the profit calculated. The contention of the assessee is that Accounting Standard 7 is not applicable and therefore, the deduction shall be given on the entire amount. We are unable to accept the contentions of the learned counsel for the assessee. The deduction u/section 80IB(10) is on the profit of the housing project included in the total income of the assessee. The profit would arise or accrue only on the sale/agreement to sell the housing unit and not otherwise. Only in respect of housing unit, which was sold or agreed to sell during the assessment year under consideration shall be eligible for deduction under SECTION80IB of the Act. In case the assessee has ....