TaxTMI 
TaxTMI 
2021 (11) TMI 534
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....rder of the Income Tax Appellate Tribunal, Bengaluru ('Tribunal' for short) passed in ITA No.1804/BANG/2010 dated 11.09.2015 relating to the Assessment Year 2011-2012. 2. The appeal was admitted by this Court to consider the following substantial question of law: "Whether on the facts and in the circumstances of the case, the Tribunal was right in law in allowing deduction under Section 80IB(10) to the assessee despite violation of condition contained in 80IB(10)(b) which states that the housing project should be on a plot of land which has a minimum area of 1 acre?" 3. The assessee is a partnership firm engaged in the business of development of real estate and construction of residential apartments and business complexes and execution ....
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....mann.com 327, and Commissioner of Income Tax Vs. Veena Developers reported in (2015) 277 CTR 0297. 5. On the contrary, learned counsel for the revenue would submit that the assessee being a partnership firm, four housing projects were sanctioned by the Mangaluru City Municipal Corporation in the very same Sy.No.132, in which the extent of land was more than the area of one acre. Considering these aspects, the Commissioner as well as Income Tax Appellate Tribunal has reversed the finding of the Assessing Authority and held that the assessee is eligible for the deduction claimed under Section 80IB(10) of the Act. Accordingly, seeks to answer the substantial question of law in favour of the assessee and against the revenue. 6. Learned counse....
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....ned in the same Sy.No.132 situated at Derebail Village, Mangaluru in the individual names of the partners of the firm is as under: Name of the partner Survey No. in which property is situated Extent (in cents) 1. Sri. R. Ganesh Shenoy Survey No. 132 situated at Derebail village. Mangalore. 39.50 2. Smt. Gayathri Pai Survey No. 132 situated at Derebail village. Mangalore. 17.50 3. Sri. S. Vaman Pai Survey No. 132 situated at Derebail village. Mangalore. 32.50 4. Sri. B. Nagaraj Rao Survey No. 132 situated at Derebail village. Mangalore. 60.25 5. Sri. B. Bharath Raj 6. Sri. B. Sanjith Raj Rao 149.75 9. Having regard to these aspects, the Tribunal placing relia....
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....nder cannot be denied to all those housing projects. Section 80IB(10) while specifying the size of the plot of land, does not specify the size or the number of housing projects that are required to be undertaken on a plot having minimum area of one acre. As a result, significance of the size of the plot of land is lost and, therefore, the assessee subject to fulfilling other conditions becomes entitled to Section 80IB(10) deduction on construction of a housing project on a plot having area of one acre, irrespective of the fact that there exist other housing projects or not. In these circumstances, the decision of the Tribunal in rejecting the contention of the Revenue regarding the size of the plot cannot be faulted." 11. This ruling of Ho....