TaxTMI 
TaxTMI 
2014 (9) TMI 653
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....sq Mt. 15/5/2000 3. Om-dutt Co-op Hsg Society Khamdeve Road Dharavi 1264.10 sq Mt. 31/7/2003 2.1 AO denied the claim of the assessee on the ground that the conditions prescribed under clause (b) of section 80IB(10) regarding minimum area of 1 acre of the plot has not been satisfied by the assessee. The assessee claimed that all the three plots of land should be considered as one project for the purpose of deduction u/s 80IB(10). It was explained that under the slum rehabilitation scheme plot of land on which the housing projects are developed are always less than 1 acre and, therefore, when the assessee has developed the housing project on three separate plots though under the one city survey no. then the area of all these plots should be taken together as it falls under the same survey no. The AO did not accept the contention of the assessee and accordingly disallowed the claim of the assessee. 3. On appeal, apart from merging all the plots, the assessee has also contended that the slum rehabilitation scheme has been notified by the board vide notification dated 5th January 2011, therefore, the condition of minimum area of 1 acre of land is not applicable in the case ....
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....) (a) & (b), the condition prescribed under these clause is not applicable on the project under slum rehabilitation scheme. He has submitted that the CIT(A) has denied the claim of the assessee on the ground that the notification of the board is not applicable to the project in question as it has been approved prior to 01st April 2004 as the condition provided under the said notification. The Ld. AR has submitted that once the slum rehabilitation scheme has been notified by the board then the condition of minimum area of 1 acre is not applicable on the project under said scheme. He has further submitted that by introduction of the proviso in the section, rigours of the conditions has been relaxed to achieve the socio economic object of providing the concession of deduction u/s 80IB(10). Thus the Ld. AR has submitted that the provision should be interpreted liberally. In support of his contention he has relied upon the following decision;- (i) CIT v. Suresh N. Gupta [2008] 297 ITR 322 (ii) Bajaj Tempo Ltd. v. CIT [1992] 196 ITR 188 (iii) 326 ITR 254 (Guj) (sic) and submitted that while interpreting the statute the purpose of clause should be applied. 5. On the other hand Ld. DR....
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....e assessee. This has been clarified by learned counsel for the assessee in course of arguments before us. In such circumstances, we fail to see as to how the development can be said to be done by the assessee in plot of land of one acre and above. Conclusion' of learned CIT(A) that plot size of three sites are to be taken together, in our view, is not correct. Fact that all the three project are located in one City survey Number is again riot relevant. If the reasoning of the learned CIT(A) is accepted, then it would mean that developer can aggregate plot area of the development carried out by him in different areas and aggregate the same so as to claim benefits of deduction u/s. 80IB(10) of the Act. Intention behind the provisions of Section 80IB(10) was not to allow developers to have benefit of such aggregation. We are therefore of the view that learned CIT(A) fell into an error in holding that the assessee was entitled to benefits of section 80IB(10) of the Act. In our view, Assessing Officer was right in rejecting the claim of the assessee. We, therefore, reverse the orders of Ld. CIT(A) and restore the order of the Assessing Officer." 6.1 We further note that for the A.Y....
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....t, 1966 (Mah.XXXVII of 1966) and published vide notification No. TPS- 1893/973/CR-49/93A/UD-13, dated the 26th February, 2004, as a scheme for the purposes of the said section subject to the condition that any amendment to the Scheme hereby notified shall be required to be re-notified by the Central Board of Direct Taxes. This notification shall be deemed to apply to projects approved by a local authority under the aforesaid scheme on or after the 01st day of April, 2004 and before 31st day of March, 2008 thereby making the incomes arising from such Projects eligible for deduction under sub-section (10) of section 80IB from the Assessment Year 2005-06 onwards." 7.1 As per this notification the board in para 2 has stated that this notification shall be deemed to apply to the projects approved by the local authority under the SRS scheme on or after 01st April 2004 and before 31st March 2008. It was further clarified that the income arising from such projects eligible for deduction u/s 80IB(10) from the A.Y. 2004-05 onwards. The question arises whether while notifying the scheme the board can attach any condition for the eligibility of the project to avail t....
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....80IB(10) is available to the housing project which fulfils the conditions stipulated there under. One of the conditions is that the project is on the size of plot of land which has a minimum area of 1 acre under clause (b) of section 80IB(10). An exclusion has been carved out under the proviso to clause (a) & (b) of the section 80IB(10) whereby the condition stipulated under clause (a) & (b) shall not apply to the housing project carried out in accordance with the scheme framed by the Central Government or State Government for reconstruction or redevelopment of area declared as slum area under the law. The projects of the assessee are under the slum rehabilitation scheme framed by the State Government of Maharashtra which has been notified by the board vide notification dated 05th January 2011. Thus it is clear that the requirement under the proviso to section 80IB(10) (a) & (b) for exclusion of the conditions prescribed under the said clauses is that the housing project is carried out in accordance with the scheme for reconstruction or redevelopment of slum area. Such scheme either framed by State Government or Central Government and notified by the board in this behalf. The plain....