TaxTMI 
TaxTMI 
2026 (6) TMI 90
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....uire any specific adjudication. 3. The Ground No. 2 raised by the assessee is challenging the confirmation of disallowance of claim of assessee under section 80IB(10) of the Act. 3.1. We have heard the rival submissions and perused the materials available on record. The assessee company is engaged in the business of construction and development of housing projects. The assessee purchased a piece of land from M/s Crossing Infrastructure Private Limited (CIPL) measuring 40716 square meter located at NH-24 Ghaziabad as per registered sale deed dated 27-12-2007 along with approved plan dated 27-12-2007 in the name of M/s CIPL. The assessee conceived a project namely "Mahagan Mascott" on the captioned land and also started construction on the site as per plan during the year. Subsequent to that, an adjoining piece of land was also purchased vide registered sale deed dated 31-7-2009 measuring 11969 square meter from M/s CIPL only. Accordingly the revised plan of the project got approved vide sanction letter dated 12-11-2009. The assessee company declared profit on the project completed up to specified percentage during the year and claimed deduction under section 80IB(10) of the Ac....
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.... of each of the residential units to be located there on, among others. There is absolutely no condition prescribed in section 80IB(10) of the Act that assessee has to acquire the entire piece of land in one go. It only provides that the project should come up on the land having measurement of more than one acre. In the instant case, as the land acquired by the assessee at the first instance itself was 40716 square meter which exceeds the prescribed limit of more than one acre, the deduction cannot be disturbed on that count. 3.4. The observation of the learned AO about approval of the project from the competent authority in piecemeal manner has got absolutely no merit, as initial approval had already been obtained on 27-12-2007 which is before 31- 03-2008. The explanation appended to section 80IB(10) of the Act itself clarifies that if there are two or more approvals, then the date of first approval shall be treated as the date of approval for the purpose of this section. Further, the approval in the name of the previous owner of land in both the instances will also not controvert the provisions of the law as the assessee had bought the land from CIPL along with the approval on....
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....uare feet area, the remaining project comprising of the units having less than 1000 square feet built up area still fulfils all the requirements and conditions prescribed under section 80IB(10) of the Act and subserves the object and scheme of the statute. The built up area restriction is provided under the provision to achieve the object of houses available within the financial capacity of the general public at affordable prices. Therefore, if the units having built up area of more than 1000 square feet are excluded from the project, the remaining project still fulfils the objects of the legislature and thus entitles for the claim under section 80IB(10) of the Act on proportionate basis. This view of ours is further fortified by the following decisions of Hon'ble High Courts:- a) CIT vs Arun Excello Foundations P Ltd reported in 212 taxman 342 (Mad) b) CIT vs Elegant Estates reported in 383 ITR 49 (Mad) c) CIT vs Brigade Enterprises Ltd reported in 429 ITR 511 (Kar) d) Devashri Nirman LLP vs ACIT reported in 429 ITR 597 (Bom) 3.7. In view of the aforesaid observations and respectfully following the aforesaid decisions, we hold that the assess....
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..... 5367/Del/2024 - Asst Year 2011-12- Revenue Appeal 7. The first issue to be decided in this appeal is as to whether the learned CIT(A) was justified in deleting the addition made in the sum of Rs 32,38,51,506 on account of bogus purchases for want of incriminating material found during the course of search in the facts and circumstances of the instant case. 7.1. We have heard the rival submissions and perused the materials available on record. A search and seizure operation under section 132 of the Act was carried out on 3-8-2016 in different business and residential premises of Mahagun group of companies. The assessee company was also covered in the said search. The learned AO noted that assessee has taken bogus purchase invoices from certain parties. Shri Amit Jain, director of the company in his statement recorded under section 132(4) of the Act had admitted that he had made purchases of cement and steel outside the books and in the post search enquiry, the search team made enquiries under section 133(6) of the Act and observed that the notice sent to various parties either remained by and large unserved or uncomplied with. Even during the assessment proceedings, again no....
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....section 143(1) or 147 or 153A of the Act could be disturbed only when there is an incriminating material found during the course of search qua the addition on account of bogus purchases qua the assessment year under consideration. Accordingly, the addition made by the Learned AO was deleted by the Learned CIT(A). This factual finding of the learned CIT(A) could not be controverted by the revenue before us by bringing on record contrary evidences. Hence, we do not find any infirmity in the order of the Learned CIT(A). Accordingly, the Ground Nos. 1 to 6 raised by the revenue are hereby dismissed. 8. The Ground No. 7 raised by the revenue is challenging the deletion of addition of Rs. 11,25,480 on account of notional rent. 8.1. We have heard the rival submissions and perused the materials available on record. On perusal of the balance sheet and profit loss account of the assessee company, the Learned AO noticed that assessee has shown unsold completed constructions / stock under the inventory column of Rs. 3,21,56,575. It was noted that assessee has not shown any rental income on the stocks held by the company. The Learned AO by placing reliance on the decision of Hon'ble Juris....