HIGH COURT OF MADRAS
Commissioner of Income-tax
Versus
Arun Excello Foundations (P.) Ltd.
Tax Case (Appeal) Nos. 1348 & 1349 of 2007
Date of Pronouncement – October 18, 2012
JUDGMENT
Mrs. Chitra Venkataraman, J. – The Revenue is on appeal against the order of the Income Tax Appellate Tribunal relating to assessment years 2003-04 and 2004-05 by raising the following common question of law:-
“Whether in the facts and circumstances of the case, the Tribunal was right in holding that deduction under Section 80IB(10) is allowable on a pro rata basis, where both commercial and residential houses have been built, when there is no such provision under the statute to grant the same?”
2. The assessee is a company engaged in the business of developing and constructing housing projects. In the returns filed for assessment years 2003-04 and 2004-05, the assessee claimed deduction under Section 80-IB(10) of the Income Tax Act, (hereinafter referred to as the ‘Act’), in respect of project called “Raagamalika Phase -I” and “Raagamalika Phase-II” respectively. A survey operation was carried out under Section 133A of the Act to verify the claim of deduction under Section 80-IB(10) of the Act. The Assessing Officer noticed that the extent of commercial area in both the projects as per the sanctioned plan were 974 sq.ft. and 1075 sq.ft. respectively. On a specific question put to the assessee on the project, the assessee gave the details of the persons who had purchased the unit as well as the area, which reads as follows:-
BLOCK I
