2015 (9) TMI 489

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....ssessee in the present case is an individual who is engaged in the business of real estate development in her proprietary concern, M/s. Lahari Constructions. The return of income for the year was filed 'NIL' income after claiming deduction out of the profits of the year. The deduction was claimed in respect of profit derived from housing project developed at Bhanoor Village in Medak District on an area of 16 acres and 7 guntas. The claim was made in the years 2009-10, 2010-11 and 2011-12 as various units are sold in respective assessment years. In the impugned assessment year, following the findings in AY. 2009-10, Assessing Officer (AO) disallowed the claim of deduction. Ld.CIT(A) also gives a finding that facts are similar in this....

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....r on account of assessee's claim for deduction under S.80IB(10) in respect of profit derived from the housing project undertaken by her was confirmed by the learned CIT(A) by his impugned order on two grounds. Firstly, he held that the commercial space of 11,913 sq. ft. in the project developed by the assessee was more than the prescribed limit of 5% of the total built up area of the project. Secondly, he held that the out of total 136 units constructed by the assessee in the project, two units bearing Nos.118 and 121 (correct No. is 21, as pointed out by the learned counsel for the assessee) were having built up area of more than the maximum area of 1,500 sq. ft. permissible as per the relevant provisions. The learned CIT(A) held that ther....

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.... commercial complex was built up was a part and parcel of the project developed by the assessee. In this regard, it is observed that a similar issue had come up for consideration before the Chennai Bench of this Tribunal in the case of Lavanya Property Developers Pvt. Ltd. V/s. ACIT (ITA No.148/Mds/2010 dated 16.9.2011), wherein the assessee had obtained approval for the project comprising of five blocks to be developed on the land admeasuring 1.445 acres. He, however, sold plot of land pertaining to one block and developed only the balance area of 1.2 acres and claimed deduction under S.80IB(10) in relation to the four blocks only, built by it. The Assessing Officer disallowed the: claim of the assessee on the ground that the plot of land ....

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....urns of income, and neither they nor the assessee claimed any deduction under S.80IB(10) in respect of the said profit. 14. In so far as the residential units No.21 and 118 are concerned, which allegedly were having more than the permissible maximum built up area of 1,500 sq. ft. each, the learned counsel for the assessee has filed before us a copy of the relevant sale deed dated 11th September, 2008, whereby the residential unit No.21 comprising of plot of land and duplex house built thereon was sold by the assessee. A perusal of the said sale deed clearly mentions the built up area as 1,364 sq. ft. in the description of the property sold and even the building plan annexed to the said sale deed as approved by the concerned authori....

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.... this regard, the claim of the assessee right from the beginning was that the residential unit comprising of plot of land with only ground floor constructed thereon was sold to the concerned buyer vide sale deed dated 3rd September, 2010, having built up area of 1,475 sq. ft. and the construction of first floor as found by the DVO during his visit on 17.12.2011, was being done by the owner of the said plot and not by the assessee. As demonstrated by the learned counsel for the assessee at the time of hearing before us, this position is duly supported by the copy of the sale deed dated 3.9.2010, placed at page Nos.67 to 78 of the paper-book, which clearly shows that the residential unit No.118 comprising of plot of land as well as a resident....