2012 (7) TMI 984

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....r and developer. We are concerned herein with the residential project constructed at Kalyan. For the year under consideration the assessee company claimed deduction under section 80IB(1) of the Act wherein the whole amount of profit has been claimed as exempt income. However, the AO proceeded on the footing that the assessee has not fulfilled the conditions stipulated in the aforementioned section and hence it is not eligible for deduction under section 80IB of the Act. A survey action was carried out on 03.10.2006 at the project site at Kalyan. It has come to light that the assessee company not only built flats but also constructed row houses, each admeasuring more than 1500 sq.ft. In addition, the assessee company had constructed flats in....

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....deduction under section 80IB in respect of A & B Wings, which are part of the same project and the fact that the project area is more than one acre, if all the three wings are considered together, has not been denied by the AO. Therefore, in the light of various decisions of the ITAT, referred to by the learned CIT(A), the AO was directed to allow proportionate deduction under section 80IB of the Act on residential units which fulfils the conditions prescribed in section 80IB of the Act. 4. In principle the Revenue is of the opinion that any deviation in the stipulation prescribed under section 80IB prohibits the assessee to claim deduction under section 80IB for the entire project. Therefore, it was contended that the CIT(A) was not jus....

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....ater came to be known as part of "City of Mumbai". As per the Municipal Corporation Act, 1938 the terms of "City of Mumbai", "Suburbs", "Extended Suburbs of Mumbai" and "Corporation of Greater Mumbai (Brihan Mumbai)" have different meanings. Section 80IB(10) uses the expression "City of Mumbai", which expression is different from "Municipal Corporation of Greater Mumbai" and the limit of city of Mumbai ends on the central side at Mulund, i.e. Chunnabhatti, between Sion and Kurla. The expression City of Mumbai has come up for consideration before the Hon'ble Bombay High Court in the case of Shri Mavji Mulji Merchant vs. State of Maharashtra [1993](3) Bom.C.R. 220. The Hon'ble High Court discussed this issue elaborately and by analysi....