2018 (1) TMI 1646

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.... the affidavit filed by the assessee and considering the submissions of the learned Authorised Representative, we are satisfied that the delay in filing the present appeal is due to bonafide reasons. Hence, we are inclined to condone the delay and admit the appeal for hearing on merits. 3. The solitary issue arising for consideration in this appeal relates to disallowance of deduction claimed under section 80IB(10) of the Act in respect of housing project. 4. Brief facts are, the assessee a company is engaged in the business of construction and development of housing projects. For the impugned assessment year, the assessee filed its return of income on 30th September 2011, declaring nil income under the normal provisions after claiming de....

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....i was also examined on oath under section 131 of the Act by the Assessing Officer. In the statement recorded, Shri Dwarkanath Tiwari, agreed that the assessee has sold three flats to him in SRA project. The Assessing Officer referring to clause-(e) and (f) of section 80IB(10) of the Act observed, if more than one residential unit in a housing project is allotted to one individual no deduction under section 80IB(10) of the Act is allowable. Accordingly, he called upon the assessee to explain why deduction claimed under section 80IB(10) should not be disallowed. In response, it was submitted by the assessee, even if conditions of section 80IB(10) of the Act are not complied with in respect of some flats, however, the project would still quali....

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....itted, for violation of conditions of clause-(f) in respect of three flats deduction claimed for the entire housing project cannot be disallowed. He submitted, proportionate disallowance can made in respect of flats which do not fulfill the conditions of section 80IB(10) of the Act. In this context, he relied upon the following decisions:- i) Biswas Promotors Pvt. Ltd. v/s ACIT, [2013] 214 taxman 524; ii) CIT v/s Arun Exelo Foundation Pvt. Ltd., [201Rs. 3] 212 taxman 342 (Mad.); iii) ITO v/s Paras Builders, 69 SOT 82; 7. Learned Departmental Representative relied upon the observations of the Assessing Officer and the learned Commissioner (Appeals). 8. We have heard rival contentions and perused the material available on record. As c....

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....e statute would reveal that it is a beneficial provision introduced by the legislature to deal with the housing problem. Thus, such provision has to be construed liberally. Undisputedly, except violation of conditions of clause-(f) of section 80IB(10) of the Act in respect of two flats, all other conditions of section 80IB(10) of the Act are fulfilled in respect of the housing project which is evident from the fact that there is no other allegation made by the Assessing Officer. Therefore, in our view, for violation of conditions of clause-(f) of section 80IB(10) of the Act in respect of two flats, the deduction for the entire housing project or in respect of other flats which otherwise are complying to the conditions of section 80IB(10) ca....