Section 80-IB(10): Open terrace area excluded by Local Authority from working of built-up area cannot be included by revenue

The Deputy Commissioner of Income Tax Vs. M/s. Ace star Properties Pvt. Ltd (ITAT Chennai) Madras High Court in M/s. Ceebros Hotels Pvt. Ltd. vs. DCIT (TCA No. 581 of 2008, 1186 of 2008 and 136 of 2009, dated 19.10.2012) found that while contemplating deduction under Section 80- IB(10) of the Act to a housing project approved by the local authority, the area excluded from the working of built-up area by the local authority, cannot be taken as built-up area. In fact, the Madras High Court has observed as follows at para 36 of its judgment:- “Given the fact that contemplation of deduction is t...