TaxTMI 
TaxTMI 
2016 (3) TMI 453
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....ee is eligible for deduction under section 80IB(10) of the I.T. Act even though the second permission was taken by the assessee beyond the prescribed due date. 2. Brief facts of the case are that the assessee, a partnership firm carrying on business as "Builders and Rural Estate Developers", had taken-up development of a housing project at Hyderabad which is named as "La Gardenia". It filed its return of income for the A.Y. 2010- 2011 admitting income at Rs. 'NIL' after claiming deduction under section 80IB(10) of the Act at Rs. 38,00,719. During the assessment proceedings under section 143(3) of the I.T. Act, the A.O. called for various details to verify the genuineness and allowability of the deduction claimed under section 80I....
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....tion only in respect of the constructed area of 9763.76 sq. mts and is eligible for deduction of Rs. 19,29,146 only under section 80IB of the Income Tax Act. From the documents relating to the permission of the project, the A.O. observed that the permission was not in the name of the assessee firm but was in the name of land owners whereas, the provision of section 80IB(10) speaks about the grant of permission and applicability of exemption only to the firm for which the municipal permission is granted for. He observed that the assessee firm has satisfied all the conditions required under section 80IB(10) of the Act for allowing the deduction under section 80IB except for obtaining the plan approval from the local authority in the name of t....
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.... made by the A.O. Against the order of the Ld. CIT(A), both the Assessee as well as the Revenue are in appeal before us. 3. The Ld. Counsel for the assessee submitted that the A.O. himself has observed that the assessee has fulfilled all the conditions prescribed under section 80IB(10) of the I.T. Act except for the obtaining municipal permission for construction of the building in its name. He has submitted that the Coordinate Bench of this Tribunal in assessee's own case for the A.Y. 2009-10 in ITA.No.550/Hyd/2013 and ITA.No.590/Hyd/2013 dated 07.03.2014, while considering the assessee's claim of deduction under section 80IB(10) for the very same project and by following the decision of the Coordinate Bench of the Tribunal in t....
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....nd also on the estimation of income, we find that for the year under consideration also, the issue needs re-consideration by the A.O. on similar lines as in the earlier assessment year. The relevant paragraph is reproduced hereunder for ready reference. "7. Even though principles considered therein do apply to the present facts, what we are unable to decide is whether the same will apply to the assessee. As seen from the permission granted by the GHMC the original sanctioned plan was for cellar, stilt + 9 floors consisting of 9763.76 sq. meters. The revised plan was also stated to be cellar, stilt + 9 floors + pent house. We are unable to understand whether addition of only pent house will increase the space of built up area by 6543.84 s....