TaxTMI 
TaxTMI 
2015 (8) TMI 1367
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....he impugned assessment year on 30-10-2009 declaring 'NIL' income. The case of the assessee was selected for scrutiny. Accordingly, notice u/s. 143(2) was issued to the assessee on 08-09-2010. The assessee had developed housing project, 'Mitrangan' at Baner, Aundh, Pune. The assessee claimed deduction of Rs. 1,14,00,368/- u/s. 80IB(10) in respect of the aforesaid project. During the course of scrutiny assessment, the Assessing Officer observed that the local authority had approved project on 16-08-2004. As per the provisions of section 80IB(10), the project should have been completed within 4 years from the end of financial year in which project is approved. In the present case the project should have been completed by 31-03-2009. As per t....
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....ly for the reason that part of the project land was acquired for D.P. Road. The Tribunal has been consistently taking a view that where the land has been acquired for construction of D.P. Road, and the project land is reduced below the statutory limit of 1 acre, the assessee would still be eligible for claiming deduction u/s. 80IB(10). In support of his submissions, the ld. AR placed reliance on the decision of the Tribunal in the case of M/s. B.K. Pate Enterprises Vs. ACIT in ITA No. 736/PN/2010 for the assessment year 2005-06 decided on 08-07-2011. With regard to the completion of the project the ld. AR submitted that originally the project was approved for 30 flats on 16-08-2004. Subsequently, the layout was revised on 31-03-2008 for 36 ....
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.... appeal of the assessee. 5. We have heard the submissions made by the representatives of both the sides and have perused the orders of the authorities below. The assessee has developed a housing project under the name of 'Mitrangan'. One of the reason for disallowing deduction u/s. 80IB(10), on the said project is that the size of plot is less than 1 acre. As per the provisions of section 80IB(10), the project should be on the size of plot with minimum area of 1 acre. In the present case, the original layout of the project was on land measuring 6300 sq. mtr. Out of the said area 2955 sq. mtr. was reserved for D.P. Road. Thus, the size of the plot for the project was reduced to 3344 sq. mtr. i.e. less than 1 acre (i.e. 4000 sq. mtr). The a....
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....e Sanskruti" was constructed on the land situated at S. No. 89/1 +90/1 + 91/1. In the said letter, assessee has also clarified that the area is 49,628 sq. fts. The details of the entire plot has also been given in Annexure enclosed to the said letter dt. 30.11.2007 of the assessee to the A.O clarifying that the plot area is 4612.34 Sq. Mtrs and after deduction of the area for the road, the net plot area is 3592.34 Sq. Mtrs. It is also an undisputed fact that the assessee had submitted the auditors' report certifying the claim of deduction u/s. 80 IB (10) along with the return. The CBDT vide it circular No. 5 of 2005 dt. 15.7.2005 (made available at page Nos. 15 to 17 of the paper book) has made it clear that area occupied by internal ro....
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....nction of the D.P. Road. The area of D.P. road has been shown as 1020 sq. mtrs. It is also evident from the sanctioned plan made available at page No. l of the paper book that PMC has allowed to the assessee the construction of the FSI of 4607.198 sq. mtrs. Generally, the FSI allowed is in PMC limit. Under these circumstances, especially in view of CBDT Circular No. 5 of 2005 dated 15.7.2005 and the decisions of Pune Bench of the Tribunal in the above cited cases relied upon by the Ld. A.R, we are of the view that A.O has rightly allowed the claimed deduction u/s. 80 IB(10) treating the size of the plot as required under sub-clause (b) to Subsection (10) to Section 80IB of the Act. The Ld CIT was thus not justified in excluding the area of ....
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....7. Another reason for disallowing deduction u/s. 80IB(10) is, that the entire project was not completed within the specified time limit. The project was approved by the local authority on 16-08-2004. As per the provisions of section 80IB(10)(a)(ii), the housing project should be completed within 4 years from the end of the financial year in which the housing project is approved i.e. by 31-03-2009. Originally, project was approved for 30 flats. Subsequently, 6 more flats were added vide revised layout plan. Undisputedly, 30 flats (10 flats in building A and 20 flats in building B), were completed within the stipulated time limit of 4 years and completion certificate in respect of those 30 flats were received by the assessee from PMC on 08-0....