TaxTMI 
TaxTMI 
2012 (9) TMI 688
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....ion was not fulfilled. 2. The ld. Counsel for the assessee, Shri Ashish Goyal along with Shri Girish Agrawal, submitted that only one house i.e. A- 23, Crystal Campus was measured by the registered Valuer which was found to be of 19088.23 sq. ft. and is admittedly beyond the prescribed limit of 1500 sq.ft. However, the ld. Counsel for the assessee contended that this house was originally allotted to Smt. Thersiyamma Soman and at the time of allotment, the area of the house was 1235 sq.ft. and without the permission of the municipal corporation about 600 to 700 sq. ft. was added by her and thereafter the house was sold to Shri Michael Naik vide sale deed dated 10.10.2006. Regarding other houses, it was claimed that those houses were not mea....
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..... We have perused the record available on the file and considered the arguments advanced by the learned respective counsel. The facts, in brief, are that the assessee declared income of Rs. 1,15,800/- in its return filed on 31.10.2006 after claiming the deduction of Rs. 33,89,940/- u/s 80IB(10) of the Act. The case of the assessee was selected for scrutiny, therefore, notice u/s 143(2) was issued to the assessee to which the assessee attended the assessment proceedings. The assessee is engaged in the business of construction and sale of residential house. The assessee constructed a project in the name of Crystal Campus. The assessee started its project on 22.10.2003 for which permission was accorded by the municipal corporation on 22.10.20....
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....ent undertakings.12 80-IB. (1) Where the gross total income of an assessee includes any profits and gains derived from any business referred to in sub-sections (3) to 13[(11), (11A) and (11B)14] (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. [(10) 42The amount of deduction in the case of an undertaking developing and building housing projects approved before the 31st day of March, 43[2008] by a local authority shall be hundred per cen....
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....the project is on the size of a plot of land which has a minimum area of one acre: Provided that nothing contained in clause (a) or clause (b) shall apply to a housing project carried out in accordance with a scheme framed by the Central Government or a State Government for reconstruction or redevelopment of existing buildings in areas declared to be slum areas under any law for the time being in force and such scheme is notified by the Board in this behalf; (c) the residential unit has a maximum built-up area of one thousand square feet where such residential unit is situated within the city of Delhi or Mumbai or within twenty-five kilometres from the municipal limits of these cities and one thousand and five hundred square feet a....
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....Store and not to the assessee. A substitution was made by the Finance (No. 2) Act, 2004 with effect from 1.4.2005 and prior to its substitution sub-section (10) as amended by the Finance Act, 2000 with effect from 1.4.2001 and Finance Act, 2003 with retrospective effect from 1.4.2002 and as per sub-clause (ii) to Explanation, the date of completion of construction of the housing project shall be taken to be the date on which completion certificate in respect of such housing project is issued by the local authority and as per sub-section (c), the maximum built area should not exceed 1500 sq.ft. However, in the present appeal, the flat was measured in the presence of the representative of the assessee and the built up area was found at 1908.8....
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....anation (ii) to section 80IB(10) date of completion of construction of housing project shall be taken to the date on which the completion certificate in respect of such housing project is issued by the local authority. This clearly shows that the project has not fulfilled the condition laid in sub10 section 10(a) of section 80IB. In view of the above it is held that the appellant's undertaking is not entitled for deduction u/s 80IB. Hence, the disallowance of deduction u/s 80IB of Rs. 3389940/- is confirmed." 5. If the aforesaid conclusion drawn by the learned CIT(A) and the facts mentioned in para 2.1 of the impugned order are kept in juxtaposition and analysed, we find that the occupant of the house, Shri Michael Naik (house A-23) gave a....