TaxTMI 
TaxTMI 
2023 (8) TMI 1185
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....dabad arising out of the reassessment order passed u/s. 143(3) r.w.s. 147 of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') relating to the Assessment Year (A.Y) 2009-10. 2. The Grounds of Appeal raised by the Assessee in ITA No. 1401/Ahd/2019 in M/s. Takshashila Realities Pvt. Ltd. (The Successor of M/s. Youngstar Infrastructure) reads as follows: 1. The Ld. CIT(A) has erred in law and on facts to disallow the labour expenses of Rs. 25,68,507/-. 3. The Grounds of Appeal raised by the Assessee in ITA No. 1400/Ahd/2019 in M/s. Takshashila Realities Pvt. Ltd. (The Successor of M/s. Takshashila Gruh Nirman) reads as follows: 1. The Learned CIT(A) has erred in law and on facts to confirm the addition of ....
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.... Rs. 31,64,266/- on account of denying deduction u/s. 80IB(10) of the Act on the ground that the housing projects were not completed by the assessee within five years period. 7.1. The Brief facts of the case is that the assessee developed 11 Blocks of residential housing projects under the scheme of Takshashila Colonial starting with Block Nos. C to Q. The assessee obtained separate planning permission for construction of residential building from the local authority namely Ahmedabad Municipal Corporation (AMC) and the date of commencement of the project and also completion of construction Building Usage permission obtained from AMC for the 8 Blocks (except) 3 Blocks namely E, F & G are as follows: Sr. No. Block Nos. Commencemen....
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....xplanation of the assessee was rejected by the Assessing Officer and thereby denied the claim of deduction u/s. 80IB(10) of the Act of Rs. 31,64,266/- and added as the total income of the assessee. 9. Aggrieved against the same, the assessee filed an appeal before Ld. CIT(A). The Ld. CIT(A) after considering the submissions of the assessee held that the assessee has not fulfilled the conditions laid down in section 80IB(10) of the Act and thereby upheld the addition made by the Assessing Officer. 10. Aggrieved against the same, the assessee is in appeal before us. Ld. Counsel Mr. Sudhir Mehta submitted before us a Paper Book running to 36 pages, wherein from Page Nos. 7 to 22 placed copies of the Commencement Letter (Rajachitthi) issu....
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....ee from the Local Authorities namely Ahmedabad Municipal Corporation well within the period of 2 to 5 years. This is evidence from the table extracted at Para 7.1 of this order. The Lower Authorities without appreciating the above facts denied the claim of deduction u/s. 80IB(10), solely on the ground that the assessee has not started the building project relating to Block Nos. E, F & G and thereby wrongly held that the assessee has not completed the housing projects. 11.1. The Hon'ble High Court of Madras in the case of Viswas Promoters (P.) Ltd. (cited supra) held that each residential block is a 'housing project' in itself for the purpose of claiming deduction u/s. 80IB(10) of the Act and thereby given the claim of deduction to the as....
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....rises engaged in the development of infrastructural facilities such as roads, bridges and other structure as regards the grant of deduction in respect of development and construction of a housing project. Section 80IB is a specific provision in respect of profits and gains from undertakings engaged in developing and constructing housing projects other than infrastructure development undertakings. Thus, housing projects considered herein under Section 80IB refers to any building other than road, bridge or other structure. Thus, going by the definition of "housing project" to mean the construction of "any building" and the deduction under Section 80IB of the Act is hundred per cent of the profits derived in the previous year relevant to the a....
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....ld that the assessee, a builder, had not completed construction of all blocks of housing project, within stipulated period, would not deprive assessee from availing of deduction u/s. 80IB(10) in respect of each of completed block on stand alone basis as follows: "....8.1 Thus, the principle which emerges from the aforesaid judicial precedents is, even a single building consisting of a number of residential units can be considered to be a housing project by itself, hence, will be eligible for deduction u/s 80IB(10), if it otherwise fulfills the conditions of section 80IB(10). Applying the aforesaid principles to the facts of the present case, it is very much evident that blocks A, B & F in respect of which assessee has claimed deduc....