2012 (11) TMI 633

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....stances of the case, the Income Tax Appellate Tribunal was right in law in holding that the assessee was eligible for deduction under Section 80IB(10) in pro-rata basis for housing unit having less than 1500 sq.ft., even though it would defeat the intention behind enacting the said provision, which was only for providing housing facilities for middle income group? "   2. It is seen from the facts herein that the assessee is a company engaged in property development and promotion. In respect of the assessment year 2003-04, the assessee claimed deduction in respect of 13 houses out of 22 houses, which are row houses, under Section 80IB of the Income Tax Act (hereinafter referred to as "the Act"), they being less than 1500 sq.ft of bui....

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....dual house buildings. Hence, the assessee could not be held as having developed and constructed a project. Further, the assessee had produced the building approval only for individual houses and had not developed and built the project with the approval of the local authority. Hence, the Commissioner of Income Tax (Appeals) confirmed the order of assessment.   5. Aggrieved by this, the assessee went on further appeal before the Income Tax Appellate Tribunal. On a perusal of the approval granted on 16.02.1987 by the Deputy Director, Town Planning of Kovai-Periyar-Nilagiri District, the Tribunal pointed out that the approval from the local authority, as per the requirement, was rightly obtained. It further held that the entire project ....