TaxTMI 
TaxTMI 
2025 (7) TMI 107
X X X X Extracts X X X X
X X X X Extracts X X X X
....ection 143(3) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') relating to the Assessment Year 2020-21. 2. Brief facts of the case is that the assessee is a firm engaged in the business of construction of residential apartment namely "Karnavati Riviera" and "Karnavati Skylane". For the Asst. Year 2020-21, assessee filed its Return of Income on 19-01-2021 declaring Nil income. The return was taken scrutiny assessment, the Assessing Officer held that the claim of deduction of Rs. 5,15,64,217/- made u/s. 80IBA of the Act on the ground that the carpet area as per the floor plan of the building exists 60 Sq. Mtrs. The assessee explained as per section 2 clause (k) of Real Estate (Regulation and Development) Act, 2016, carpet....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... through the grounds of appeal, facts of the case, assessment order passed by the AO, written submissions and supporting documents uploaded as well as judicial decisions relied upon by the appellant. AO has made the impugned addition on the ground that carpet area as per the floor plan under the project of Karnavati Riviera residential unit is worked out at 651.68 Sq. ft (682.56 -30.88), even after presuming that the wash area is already included in the Kitchen/Dining Area, as claimed by the assessee, which is equivalent to 60.54 Sq. meters, which is more than 60 Sq. meters, to be eligible to claim the deduction U/s 80IBA. It has further been noted by the AO that definition of carpet area includes the area covered by internal partition wall....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e carpet area, then it comes to 620.80 Sq. Ft [682.56-61.76 (30.88 x 2)] which is 57.70 Sq. Mtr. 5.4 Before adjudicating the issue, it is imperative to discuss the carpet area as per the provision of section 80-IBA. Clause(a) of Sub-section (6) of section 80-IBA define the "carpet area" for the purpose of claiming deduction u/s 80-IBA as under. (a) "carpet area" shall have the same meaning as assigned to it in clause (k) of section 2 of the Real Estate (Regulation and Development) Act, 2016 (16) of 2016)." Further Clause(b) of Sub-section (6) of section 80-IBA define the "competent authority" for the purpose as under: (b) "competent authority" means the authority empowered to approve the building plan by ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ng unit sold in the scheme Karnavati Rivera, which were uploaded during the course of assessment proceedings. Appellant firm has also uploaded the same sale deeds of residential unit sold in the scheme Karnavati Rivera on sample basis, which is on record. Lastly, in support of its contention, appellant has relied upon the decision of Hon'ble Supreme Court, in the case of Principal Commissioner of Income-tax vs. Vardhan Builders, (2023) 155 taxmann.com 391 (SC), wherein Hon'ble Bombay High Court has held that the benefit of deduction under section 80-IB(10) could not be denied. Assessee was claiming deduction on the basis of approved plans of BMC, occupancy certificate Issued by BMC, possession letters and agreements for sale of flat....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... of section 801BA as assigned to Clause-k of Section 2 of RERA Act, 2016. From the perusal of documents uploaded by the appellant, it is evident that the carpet area of unit is less than 60 sq. mtr of housing project namely "KARNAVATI RIVERA" as per the approved plan passed by the competent authority and also as per the working given in the Engineer's Certificate. All these relevant details was also available with the AO before passing the assessment order. However, AO has made the impugned. addition denying the deduction u/s.80IBA of the Act claimed by the AO. Further, judicial decisions relied upon by the appellant is also squarely applicable in the case, as deduction has been claimed on the basis of approved plans and occupancy certi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....eveloping area far away from the City. Ld. Counsel also submitted that details of sales of residential units assessment year-wise and the claim of deduction under 80IBA as follows: Karnavati Riveria Asst. Year unit sold total revenue Profit 80IBA Deduction 2017-18 0 0 0 0 2018-19 0 0 -181796 0 2019-20 82 205000000 52820066 51564217 2020-21 90 221585000 41720588 40885883 2021-22 137 332310000 45979841 45979841 2022-23 72 181937500 20770921 23372067 2023-24 46 121600000 18528289 18812299 6.1. Ld. Counsel further submitted regular assessment is completed only for the Asst. year 2020-21 and the for the subsequent ....