PCIT Vs G. K. Developers (Bombay High Court)
Bombay High Court held that upto 1 April, 2005, the expression ‘built up area’ would exclude the balcony area and are not to be included while computing the built up area of the residential units, in housing project eligible for deduction u/s. 80IB(10) of the Income Tax Act.
Facts- Present appeal has been preferred by the department on question of law that whether on the facts and circumstances of the case and in law, the Hon’ble Tribunal was justified in granting deduction u/s. 80IB(10) without considering the DVO’s report available on record wherein violation relating to two row houses having area more than 1500 sq.ft. was shown.
Conclusion- Division Bench, in the case of The Commissioner of Income Tax-15, Mumbai vs. Tinnwala Industries, considering the question ‘whether the Income Tax Appellate Tribunal was justified in holding that the area of balcony and rewas are not to be included while computing the built up area of the residential units, in housing project eligible for deduction under section 80IB(10) of the Act’ held that the expression ‘built up area’ introduced with effect from 1 April, 2005 could not be applied retrospectively and the Tribunal was justified in holding upto 1 April, 2005, the expression ‘built up area’ would exclude the balcony area.
