2014 (1) TMI 1430

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....h, AM:- This is an appeal by revenue on the issue of eligibility for deduction u/s.8o IB(10)against the order of CIT(A) II, Thane. The revenue has raised two grounds which are as under :- "1. Whether on the facts and in the circumstances of the case and in law, the ld. CIT(A)-II Thane, was justified in holding that the assessee was eligible for deduction u/s. 80IB(10) relying on the decision....

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....per and has constructed housing project called 'Grand Manor Ideal Park' at Bhayander. The housing project of the assessee consists of ground plus 4 floors, with six wings and two Row houses. The total area of the project comprises of 4740.17 sq. mtrs, out of which the residential area consists of 4551.37 sq. mtrs. and the shops consists of 188.80 sq. mtrs, which comes to 3.98% of the total project....

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....rea which is in excess of the limit prescribed u/s. 801B(10)(d) of the I.T. Act, 1961. AO disallowed the deduction claimed by the assessee amounting to Rs.12,02,326/- u/s. 80IB(10). 3. Before the CIT(A), it was submitted that assessee's project was approved as a residential project for the F.Y. 2003-04 and the shopping area is only 3.9% of the total area of the project which was permitted under....

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.... applied to the period prior to 01/04/2005. The restriction on the commercial area imposed by the introduction of sub-section (d) to section 801B(10) w.e.f. 1.4.2005 are therefore not applicable to the appellant as this project having commercial area had commenced prior to the said date. From the details filed, it can be observed that the project of the appellant was sanctioned as housing project ....