TaxTMI 
TaxTMI 
2015 (3) TMI 456
X X X X Extracts X X X X
X X X X Extracts X X X X
....n the facts and circumstances of the case, the Tribunal was justified in holding that the assessee firm was eligible to claim deduction under Section 80IB(10) especially when the assessee had failed to fulfill the primary condition in relation to the size of area of 1 acre plot for each housing plot as laid down in the statute? ii) Is not the finding of the Tribunal bad especially when the entire land on which six projects were constructed was only 1.06 acres of land and therefore the conditions stipulated under Section 80IB(10) in relation to development of size of each plot being 1 acre was not satisfied?" 2. The brief facts of the case in a nutshell are as follows: The assessee is a company engaged in the business of constructio....
X X X X Extracts X X X X
X X X X Extracts X X X X
.....065 acres and the assessee did not fulfill the essential condition of minimum area of one acre for a single project as laid down under Section 80IB(10) of the Income Tax Act. Consequently, the Assessing Officer disallowed the deduction granted earlier to the assessee. 4. As against the said order of the Assessing Officer, the assessee filed an appeal before the Commissioner of Income Tax (Appeals), who upheld the findings of the Assessing Officer, thereby dismissed the appeal. 5. Aggrieved by the same, the assessee filed an appeal before the Tribunal. 6. Before the Tribunal, the assessee contended that there were six blocks with different names in the housing scheme and the CMDA had granted planning permits....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tion of 6 different blocks giving them different names for the purpose of convenience and identification. The ld. counsel for the assessee has placed on record a copy of the sale deed in respect of one of the allottees, to show that all the allottees have been given undivided share in land from the total area of 1.065 acres. The sale deed is at pages 51 to 63 of the paper-book. At page 61 in Schedule "A" , the details of the entire property are given. A perusal of Schedule " A" shows that the land is situated at No.141, Kottivakkam Village, Saidapet Taluk, Chingelpet District within the Registration District of Madras. The total extent of land is 1 acre and 6.5 cents, i.e. 46392 sq.ft. Each allottee gets ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... granted by the CMDA in respect of the composite housing scheme. When the Legislature introduced 100% deduction under the Income Tax Act, it was known that the local authorities could approve a housing project to the extent permitted under the Development Control Rules. When the project fulfils the criteria for being approved as a housing project, then, deductions cannot be denied under Section 80IB(10) of the Act, merely because the assessee had obtained separate plan permits for the six blocks. If the conditions specified under Section 80-IB are satisfied, then deduction is allowable on the entire project. Since the project was approved in accordance with Development Control Rules, the assessee would be entitled to 100% deduct....