TaxTMI 
TaxTMI 
2019 (10) TMI 1626
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....s under :- Assessee is a partnership firm stated to be engaged as Promoters and Builders. Assessee electronically filed its return of income for A.Y. 2012-13 on 03.09.2012 declaring total income of Rs. 53,12,627/-. The case was selected for scrutiny and thereafter assessment was framed u/s 143(3) of the Act vide order dt.31.03.2015 and the total income was determined at Rs. 11,67,11,331/-. Aggrieved by the order of AO, assessee carried the matter before Ld. CIT(A), who vide order dt.01.12.2016 (in appeal No.PN/CIT(A)-4/ITO, Wd-5(2), Pune/32/2015-16) granted partial relief to the assessee. Aggrieved by the order of Ld. CIT(A), assessee and Revenue are now in appeal before us. 3. The ground raised by the assessee in ITA No. 568/PU....
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.... to be as exempt income u/s 80IB(10) of the Act. To verify as to whether the assessee's project has satisfied the required conditions u/s 80IB(10) of the Act for claiming the deduction, commission to the Approved Valuer Shri Nitin M. Lele was given and he was asked to submit the report on the matter. On the basis of the report submitted by him, AO noted that one of the conditions stipulated u/s 80IB(10) of the Act was that the built up area of the flats should not exceed 1500 Sq. ft. AO on the basis of the valuation report noted that out of 176 flats constructed by the assessee, in respect of 40 flats, projected terrace (open to sky) was given exclusively to the assessee and thus the area of flats was in excess of 1500 Sq. ft. in those 40 f....
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.... built-up area while examining the condition prescribed under Clause (c) of Sec. 80IB(10) of the Act. He therefore submitted that the order of AO be set aside. Ld. D.R. on the other hand, supported the order of lower authorities. 7. We have heard the rival submissions and perused the material on record. The issue in the present ground is with respect to the denial of claim of deduction u/s 80IB(10) of the Act. It is the case of the Revenue that the area of the 40 flats exceeds 1500 Sq. ft. which is the maximum area stipulated under the provisions of the Act. Revenue has concluded that the area of the 40 flats exceed 1500 Sq. ft. by including the area of the open terrace which is available to those 40 flat owners. The assessee's cont....
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....venue in ITA No. 1216/PUN/2017 for A.Y. 2012-13. 9.1. Revenue is aggrieved by the order of Ld. CIT(A) as he had granted the deduction u/s 80IB(10) of the Act on proportionate basis. Ld. CIT(A) had held that since assessee has failed to comply the conditions stipulated u/s 80IB(10) of the Act for claim of deduction in respect of only 40 flats where the permissible area had exceeded 1500 Sq. ft. then the assessee cannot be denied the benefit of deduction in totality and therefore the deduction is to be denied only with respect to profits earned from those 40 flats. He accordingly directed the AO to grant proportionate deduction u/s 80IB(10) of the Act. Revenue is aggrieved with those directions of Ld. CIT(A). 10. Before us, Ld. D.R. sup....