2018 (6) TMI 1581

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....s allowable for the profits of the project as a whole and not for part of the project on a prorata basis and there is no concept of proportionate deduction u/s.80IB(10) for the completed building or block of the project. Section 80IB(10)(a) stipulates the condition for the project as a whole and not individual units or flats of buildings. 2. The order of the Ld.CIT(A) be vacated on this issue and that of AO be restored. 3. The appellant craves to leave, add, amend or alter any of the grounds of appeal at the time of hearing." 3. Briefly stated relevant facts of the case include that the assessee is a partnership firm and is engaged in the business of Promoters, Builders and Developers. Assessee filed the original return of income on 30....

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....IB(10) allows deduction to the entire housing project approved by the local authority and not to a part of the project. If the conditions set out in section 80IB(10) are satisfied, then deduction is allowable on the entire project approved by the local authority and there is no question of allowing deduction to a part of the project . . . . . . ." 21. In view of the above discussion, it is concluded that the assessee is not eligible to claim deduction u/s.80IB(10) in respect of its project "Faith". Deduction of Rs. 16,82,85,520/- claimed u/s.80IB(10) in respect of its project, "Faith" is disallowed and back to the income of the assessee. Penalty proceedings u/s.271(1)(c) are separately initiated for furnishing inaccurate particulars of in....

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....tial flats in Buildings 'B', 'C' and 'D' are concerned, is according to me a misconstrued interpretation. This is especially so, when the appellant has fulfilled all the prescribed conditions laid down in section 80IB(10) of the Act for the said flats all the prescribed conditions laid down in section 80IB(10) of the Act for the said flats and when the completion certificate for the same was issued by the local authority indicating completion prior to 31-3- 2012. The AO referred to the relevant Para of the said deduction applicable to the facts of the said case but failed to quote the relevant Para wherein the Tribunal has directed to allow the deduction for the residential units, as applicable in the appellant's case under consideration. M....

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....h all the conditions for granting of deduction u/s.80IB(10), as submitted by the appellant before him. Though the aforesaid facts were considered by the AO in Para 16 of the assessment order, the AO has commented on such the valuation report inter alia stating that "Valuation Officer had merely given the factual report" and "he has not offered any comments on whether the project is eligible for claim of deduction u/s.80IB(10)". This clearly indicates that even the report given by the Valuer appointed by the AO himself, was brushed aside lightly by the AO. In view of the discussions in the preceding paragraphs and as the appellant had complied with the provisions laid down in Sec.80IB(10) of the Act in respect of 3 buildings for 108 resident....