By Ajay R. Singh, Advocate
1 Commissioner of Income Tax-24 vs. Abode Builders;
[Income Tax Appeal No. 2020 of 2017;
Date of order : 16th February, 2022
(Bombay High Court)]
S. 80IB (10) – Housing Project - commencement of development of residential project – Date of approval/ sanction - Developer – Eligibility Assessee Firm is a developer and builder who developed a residential project called ‘Trans Residency’ on a piece of land admeasuring 12,540 sq. metres in the Andheri Area of Mumbai. The assessee firm entered into a Joint Venture Agreement with another concern M/s. Vaman Estate to develop the property vide agreement dated 28th August, 2001. The residential project ‘Trans Residency’ has 7 wings in Building No. I (A to G) and 3 wings in building No. III (A to C). The construction activity was undertaken for Wings E & F first, and residential units were sold before 31st March, 2005. The project for E & F Wing was completed in 2005 and profits were offered for tax (deduction u/s 80IB was claimed on the same) in the return of income filed for A.Y. 2005-06, while the rest of the project was completed in March, 2007, and proceeds on sale of residential units was shown in the return of income filed for A.Y. 2007-08. The return of income was filed on 19th October, 2007, declaring a total income of Rs. 18,16,656. The only addition was made on account of disallowance of claim u/s 80IB(10) of the Income Tax Act, 1961, amounting to Rs.
