2014 (3) TMI 1036

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... income claiming deduction of Rs. 32,22,094/- under section 80IB(10). Assessee has taken-up development of housing project at Miyapur and the original plan for construction of 9763 sq. meters was approved by the local authority vide proceedings dated 13.07.2007. However, assessee constructed 16307.60 sq. meters which was regularized under the Building Penalization Scheme of Government of Andhra Pradesh and the orders were passed on 26.08.2010. The A.O. in the course of assessment proceedings observed that assessee firm is eligible for the deduction only in respect of constructed area of 9763.76 sq. meters under section 80IB. However, on noticing that the project approval was obtained in the name of land owners Smt. R. Sairani and others, an....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....adhe Developers and others vs. ITO and others 23 SOT 42. 4. After considering the rival submissions, we are of the opinion that assessee is eligible for deduction to the extent of constructed area of 9763 sq. meters which was originally sanctioned. Therefore, the Revenue ground on allowing proportionate 80IB deduction does not require any reconsideration as the assessee is held otherwise eligible for deduction under section 80IB(10) and the A.O. has not find out any reason to deny except (a) plans are not in the name of the assessee (b) that there is violation of the building plans which was regularized subsequently on 26.08.2010. To that extent, Revenue grounds are not maintainable as the Coordinate Bench in the case of Radhe Developers (....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....uction under section 80IB of the Act is predominantly for the purpose of augmenting affordable dwelling and ought to be interpreted in that light. In view of the matter, the incentive provision must be construed in a manner which advances the object and intention of legislature. The fact that the assessee has obtained approval for the housing project cannot be lost sight of. As for the excess arrear constructed, it is for the BBMP to look into the violations if any, in the construction of the housing project. That does not however, authorize the A.O. to hold that the assessee has not got approval for the housing project or the conditions laid down in section 80IB(10) stated violated." 7. Even though principles considered therein do apply t....