2014 (2) TMI 1289

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....ter claiming deduction of Rs. 1,89,94,652/- under section 80IB(10) of the Income Tax Act. During the course of assessment proceedings, the Assessing Officer has observed that the assessee firm has never acquired any legally vested ownership rights in the land on which the residential apartments were constructed. The undivided shares were sold by the individual owners and the construction part was undertaken by the assessee as per all the sale agreements with the purchasers of the flat. Therefore, the assessee firm is only a constructor undertaking the construction work entrusted by the flat purchasers as per the specifications required. Therefore, it cannot be said that the assessee firm has developed and constructed the said housing projec....

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.....ft. Normally, in any housing projects, the common area constitutes about 15 to 30% super built areas which are shown as the sellable area. In the instant case, the assessee claimed that the common areas constituted from 120 to 184 sq.ft. per flat (of super built area), as under: Super built (sellable) area (Sq.ft.) Common  area (sq.ft.) Actual built up area (Sq.ft.) 1047 (smallest) 120 927 1070 123 947 1463 168 1295 1510 174 1336 1530 176 1354 1600 (largest flat) 184 1416 5. Thus, if the common areas are excluded the actual "built-up area", as defined at the section 80IB(14)(a) of the Act, of the largest flats is hardly 1416 sq.ft. (1600 sq.ft. - 844 sq.ft.), which is far within the threshold limits of 1500 sq....