2013 (4) TMI 916

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....nimum 1 acre of area for claiming deduction u/s.80IB(10) of the Income Tax Act, 1961. 2. On the facts and in circumstances of the case and in law, the Ld. CIT(A) has erred while interpreting the CBDT Circular No.5 of 2005, dated 15-07-2005 to include the area of road to be the area eligible u/s.80IB. 2. The appellant craves leave to add, amend or alter any of the above grounds of appeal". 2. The Assessing Officer relying on the report of the approved valuer came to a conclusion that assessee's project was situated at a plot of land having area of 3560.30 sq.mtrs. Among other conditions assessee is supposed to raise the project on plot equivalent to 1 acre for claiming deduction u/s.80IB(10). The Assessing Officer disall....

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....ed 15-7-2005 which contained the explanatory notes on amendments brought out by the Finance Act (No. 2) cited in 276 ITR 170 (Statute), wherein the guidelines issued were as follows: "Extension of the time limit for obtaining approval of housing projects for the purpose of tax holiday under section 80-IB and allowing deduction for re-development or reconstruction of existing building in slum areas. This section does not specifically provide area limit for the garden, the development plan roads, internal means of access, etc., in the housing project. Therefore, the same should conform to the project plan approved by the local authority in accordance with the regulations in force. Also, the area limit of the plot has to be c....

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....itions including deduction u/s.80IB(10) area of the plot of project should be 1 acre. After reducing this area net area remained at 3560.20 sq. mtrs as against the plot size of 4074 sq. mtrs, therefore, the Assessing Officer rejected the claim of deduction u/s.80IB(10). 6. According to the assessee he had purchased the land by way of Registered Development agreement dated 31-08-2004 in which total land area of 4074 sq. mtrs was mentioned. It was also found that registration of this development agreement was also made for 4074 Sq.mtrs for the purpose of registration and payment of stamp duty thereon. The sanctioned plan or the building plan approved also mentioned the plot area at 4074 sq. mtrs out of which deduction for road acquisition ....