Case Law Details
Takshashila Realities Pvt Ltd Vs ACIT (ITAT Ahmedabad)
ITAT Ahmedabad held that denial of deduction u/s. 80IB(10) of the Income Tax Act alleging non-completion of some blocks unjustified as separate building planning permission were obtained by assessee from Local Authority namely AMC for each Block as a separate housing project.
Facts- The assessee developed 11 Blocks of residential housing projects under the scheme of Takshashila Colonial starting with Block Nos. C to Q. The assessee obtained separate planning permission for construction of residential building from the local authority namely Ahmedabad Municipal Corporation (AMC) and the date of commencement of the project and also completion of construction Building Usage permission obtained from AMC for the 8 Blocks (except) 3 Blocks.
AO held that as per Section 80IB(10), the housing project shout have been completed within five years from the end of the financial year in which the housing project is approved by the Local Authority. The assessee obtained housing project for Blok Nos. C to Q from the Local Authority on 01-03-2007, therefore the entire housing projects should have been completed on or before 31-03-2012. But no construction was started in Block Nos. E, F & G by the assessee. Therefore the A.O. issued a show cause notice, asking why the entire deduction claimed u/s. 80IB(10) should not be disallowed.
AO rejecting the explanation of the assessee denied the claim of deduction u/s. 80IB(10) of the Act and added the same as the total income of the assessee. CIT(A) confirmed the addition. Being aggrieved, the present appeal is filed.
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