By K. B. Bhujle, Advocate
Principal CIT vs. Kumar Builders Consortium [2022] 447 ITR 44 (Bom.)
A.Y.: 2011-12
Date of order: 18th July, 2022 Section: 80-IB(10) of ITA, 1961
53. Housing project — Special deduction u/s 80-IB(10) — Projects comprising eligible and ineligible units — Assessee can be given special deduction proportionate to units fulfilling conditions laid down in section 80-IB(10)The assessee developed residential projects. On the question whether the Tribunal was justified in allowing the assessee’s claim to deduction u/s 80-IB (10) of the Income-tax Act, 1961 on pro rata basis in respect of eligible flats though the assessee did not comply with the limit on built-up area prescribed under this section in respect of few flats in two of its projects, the Bombay High Court held as under:
“i) Section 80-IB(10) does not support the interpretation that even if a single flat in a housing project is found to exceed the permissible maximum built-up area of 1500 sq.ft., the assessee would lose its right to claim the benefit of deduction in respect of the entire housing project u/s.80-IB(10). Clause (c) of section 80-IB(10) only qualifies an eligible residential unit and no more and if there is such a residential unit, which conforms to the requirement as to size in a housing project, all other conditions being fulfilled, the benefit of deduction cannot be denied in regard to such residential unit. Section 80- IB(10) nowhere even remo
