Sec. 80IB(10) (of Income Tax Act, 1961) allows deduct'n to housing project constructed on plot, ITAT

Facts in Brief:

1. Assessee-AOP is a builder and developer and was trading in TDR.

2. In this case the issue of deduction u/s. 80IB(10) (of Income Tax Act, 1961) remained unadjudicated.

3. Assessee had started projects, one as Slum Rehabilitation (SR) project, that SR Project had not started till the completion of first project.

4. Assessee had claimed deduction of Rs.6.06 crores u/s. 80IB (of Income Tax Act, 1961) (10 ) of the Act, that an action u/s. 133A (of Income Tax Act, 1961) was carried out at the business premises of the assessee.

5. AO held that the area of both the projects was inseparable, that in the absence of demarcation minimum area for two projects should be two acres, that actual area was only 7411 sq.mtrs., that the Arkade Bhoomi Enterprises(366/10+3-06-07,07-08,09-10&10-11) condition(b) of the section 80IB(10) (of Income Tax Act, 1961) was not satisfied, that the entire project was not completed by 31.3.2008, that the assessee had not taken approval of the CBDT for the second project which was a project under Slum Rehabilitation Scheme (SRS).

On appeal ITAT held,

6. We hold that section 80IB(10) (of Income Tax Act, 1961)allows deduction to a housing project constructed on a plot of land having minimum area of one acre and it is immaterial as to whether any other housing projects are existing on the said plot of land or not. Effective ground for both the AY.s.is decided against the AO In the result, appeals filed by the AO are dismissed.

Case reference-Arkade Bhoomi Enterprises, ... vs Department Of Income Tax