TaxTMI 
TaxTMI 
2016 (2) TMI 231
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....laya" remained unadjudicated. The Tribunal vide M.A.Nos. 75 & 76/PN/2014 order dated 22-05-2015 recalled the order of the Tribunal for the limited purpose of deciding the above issue. Hence, this is a recalled matter. 3. The grounds relating to disallowance of deduction u/s.80IB(10) in respect of housing project Kumar Padmalaya are as under : "On the facts and in the circumstances of the case and in law, the Ld.CIT(A) 6. erred in confirming the disallowance of deduction/s.80IB(10) of the Act of Rs. 1,01,94,782/- in respect of a housing project - 'Kumar Padmalaya". 7. should have appreciated that deduction u/s.80IB(10) of the Act, is available, if housing project on standalone basis satisfy all the conditions of the section 80IB(10) o....
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....he conditions of section 80IB(10). Relying on various decisions it was submitted that the assessee be allowed proportionate deduction u/s. 80IB(10). 5. However, the AO was not satisfied with the explanation given by the assessee. According to him, the deduction u/s. 80IB(10) is granted to any project as a package subject to fulfillment of all conditions stipulated in the sub-section. The entitled residential project is also approved by the local authority as a single project which cannot be subsequently and artificially broken into pieces at the will of the assessee. According to the AO for the purpose of granting deduction u/s. 80IB(10) all relevant facts have to be considered in respect of whether the whole residential project, as approv....
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....s he rejected the claim of the assessee that in case of non completion of few units in a housing project the entire deduction cannot be refused but pro-rata deduction has to be granted. 8. Aggrieved with such order of the CIT(A) the assessee is in appeal before us. 9. The Ld. Counsel for the assessee at the outset submitted that the decision of the Chennai Bench of the Tribunal in the case of Viswas Promoters Pvt. Ltd. (Supra) relied on by the CIT(A) has been reversed by the Hon'ble Madras High Court which has been reported as 255 CTR 149. In the said decision it has been held that within composite housing project where there are eligible and ineligible units the assessee can claim deduction in respect of the eligible units in the project....
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....the rival arguments made by both the sides, perused the orders of the AO and CIT(A) and the paper book filed on behalf of the assessee. We have also considered the various decisions cited before us. The only dispute in the impugned grounds raised by the assessee is regarding allowability of pro-rata deduction u/s.80IB(10) in respect of the housing project 'Kumar Padmalaya' where admittedly some of the units have not been completed before 31-03-2008. According to the revenue, for claiming deduction u/s.80IB(10) the assessee has to fulfil all the conditions laid down in section 80IB(10) and there is no concept of pro-rata deduction. According to the assessee it is entitled to pro-rata deduction u/s.80IB(10) in respect of the units which fulfi....
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....8 and 1349 of 2007 dated 10.10.2012 for grant of relief under Section 80IB(10) of the Act on a proportionate basis, by following the decision of the Bombay High Court reported in [2011] 333 ITR 289 (CIT Vs. Brahma Associates). Thus applying the decision of this Court in T.C.Nos.1348 and 1349 of 2007 dated 10.10.2012, we hold that the assessee is entitled to succeed both on the principle of proportionality as well as by reason of the construction on the meaning of the expression "housing project" as referring to construction of any building and the wordings in Section 80IB(10) of the Act. In the circumstances, we hold that the mere fact that one of the blocks have units exceeding built-up area of 1500 sq.ft, per se, would not result in nulli....
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.... 36 to 38 of the order read as under : "36. Now, coming to the second housing project in Sector No.7. Admittedly, the assessee in assessment year 2006-07 has completed only 2 buildings i.e. Q-1, Q-2 and some flats in assessment year 2007-08. The building comprised in P-1 to P-6 and the row houses have not been constructed by the assessee till the date of survey and upto 31.03.2008. 37. The Hon'ble Madras High Court in Viswas Promoters Pvt. Ltd. vs. ACIT, (2013) 255 CTR 149 (Mad.) have laid down that within a composite housing project, where there are eligible and inelligible units, the assessee can claim deduction in respect of eligible units in the project and even within the block, the assessee is entitled to claim proportionate relie....