The Commissioner of Income-tax v. Smt. Vasantha Kumarl

Judgment

1 . -5 D 3 . 1 V D C 3 . 1 t i , 4 - j ; a C ) V ‘ ( - t i p ‘ , . . 3 ) j ) ‘ ) 0 I ‘ t r 3 q — V 3 I ( t 1 ‘ t J I . C T C 3 3 i c , I I ‘ . ( ‘ ; 1 ; 0 . C ; 0 - £ I . , I C p 3 ‘ D - - - C r I - 3 4 D 7 C I t - 3 D I D t C C I . 3 ; a C , a , a V ‘ p ’ C 1 - , a ; a 3 0 - p ‘ ) D ‘ P I 1 - - - , I 3 4 , , a 0 3 3 t ) I ( r ’ 1 , a - D 3 t D 7 3 3 ’ a 3 , a I p a z V ‘ ’ 1 ’ 1 ) ; 1 3 U ’ C a ‘ ’ 1 • 3t c T - 7 _ - U U provided to the terrace, the assessee has sold the said terrace portion to the owners of the residential flats. Undoubtedly, the terrace portion cannot be taken into consideration for calculating the built-up area and has to be excluded. It appears that along with the terrace some railings/walls constructed were also sold to them. Even the construction of the walls would not add to the built-up area. After sale, the purchaser of the flat appears to have put up some construction. If that portion is taken into consideration, It exceeds the area of 1,500 sq.ft., the limit prescribed under law. It is on that ground the Assessing Officer has denied the benefit of Section 80-18(10) to the assessee. While interpreting this provision, what is to be kept In mind Is the object with which this provision was introduced. This provision was introduced with the following object: “2. Changes made by the Finance (No.2) Act, 2004 Extension of the time limit for obtaining approval of housing projects for the purpose of tax holiday under section 80-18, and allowing deduction for redevelopment or reconstruction of existing buildings in slum areas Under the existing provisions contamed in sub-section (10) of section 80-18, a deduction equal to one hundred per cent of the profits of an undertaking developing and building housing projects is allowed if the housing project is approved by a local authority before 31.3.2005. The deduction subject conditions undertaking should have commenced development of the housing project on or after the 1.10.1998, the project $ flth..3 re .,• “7c’.7’ ctJ so’a na/a. e SZc’ ‘ I “O ‘t •‘3 h’,” ‘ijc 3 r 3’k- 3 —e r tfl te eS:e’ •1 ‘s mr ‘v t-r a’ea ,f C’t• .:o c.Jj are ‘ee .v’C .2 5.,..7? •rttSt’ r’’ -‘ r C t.3tc7 “ ‘‘urn& ,n t’v’tr I a nLlfldt.zJ cq fecr3t’ ç IC 4

4. CL, S e ;icIc. (Oi cj Nc vIcb1, U ‘ t eissts 6te t’me t ttainng g o geoff bs ron tie r authrt, been exteaea - •i 312.2035 ‘ —2we,er. a time !“nC r3 been ‘troduces 2. ?..D307 for cornp1etc CT the ‘usIrg c-oject wtiere de eloorne-it and co’.structon as c,rnme’ced 3. ..onvnences cn &r after 1. 10.:9. ZL.ch n.2cs’ng pn;ect approveS L’, tre bnta: ar:zcnr. ratre ‘4 ..304 bes t e cc”ia’ete! r-ppc e t’err, ... .“ a r’d”c- a ‘d h ‘ an..,. Jo ( et. - IV -b a,t 1 ‘r t Jtc C na” s — - •‘ •-.r ‘n tr ‘t. 3’ Ii) 2 , r .‘ . - r .,s :_r r’r• •% :.:t t .. .r I .2; — —..• ,-.,r a_ i• — ‘ . • ... .. .— — -.

71. g ‘ ‘ass, ec.. ‘ the hoc.. “ fore, -3’ne s’o..)c rro’m to ‘i.e r °‘ 3( ved ,‘ :o3. 3.:tt?Grfti, •‘ ac’ c:Ja:e .. -. “ -e.af’..”•s rfltc. ‘usc t”e crea :.rr1t . . :“e : e: s a t- :,t’u I ,.ri reafe,ati’a r r’e arc-’ nt ‘ •t•n” t”e !‘ous’q c’.nect ‘s nfl,Jec, r: -ct • •t’- tafetence r’ r”e demat rat’r’ .2’ !3r •4cne !Yi, re ‘arC Ce; eIor-?et aa’rcr ti Pu-tl7er 1wtn d ;eLl. to cncurage :‘e slum awel!’ng: the ronci:tor 3F “?;r. c.m clot s ze of t’flc’ are rd also tne t’m ‘‘fl CCflSrrJct,On ‘7a oee” rdIaCPC “ r’ .ase jto;t ,..a’-nea 3ut ‘n aco’da i e 7 3 ho’jsna scerne trarneci ‘r ,.2mc;et!on ‘.f t’p by the Central .,overnment ..si overnment ‘ o”strL’ct’or r -edeelcr e lec ned n he I t,ei 1, the B ‘ ,ts, jitriet “Lilidings .n . rce ‘71 j I tI/t)thl C’), O i.-,JO tqt ‘it ‘i’t , ) t j ri\, tj I’eneti C C’’ —iy U ‘ t t t 1, ,e • • I .. .

1., 1• i.t. .1 — I. ••••• I. •, . •—.‘ •: ••. E •‘ I- —. sG rrcvi’o vti’heiit.le h Dirchis t DI LDtheC 1 tr t “ i no grourd to dey the ‘eretit vs[’i is g artel when The object of hrjusing s .l’en e ri subsnnce ic iii plnr er tei £tricti in accvrdane with la’.. ‘i ert[ 11 Itistob rot dthit nfattheT b n l[ad eld that none tf the flats excaed the spc tied unit amendment made I, 2005 annot govern plans sa lrtioned before 1 April 2005. Further, the prohibition to sell %vo flatc to the same person is introduced only in 200Q Thus the baicon & projection cannot be taken into account. In the instant case as noted by tne Assessing Officer the plan was sanctioned on 6’ April 001 These undisputed facts support the ra%t of the Assessee 12 n that view nf tile matter the Tritrinal v:as ustifiec .r lrdnti’ r the ieli..f ;n t’i’, v.scts;ee Li i.hitfl ;t ,‘as enntec! t 1 !‘ flw ttl(tC ani mr •.fl,tt4r.(eC r..1z.’ ... at’cf’e ‘h.it n ; “ ‘ade n’1 by n. . ‘w r’ t’ q lItant i q 4Cs,. r f lab 3 (C, ‘un ‘r1 r’( ‘ . ‘trt’ in 1—i’ “ir •, hit , t,’r .1 i.j •)-i”_’ —r1 VT passwspieaddv ‘SE ‘S3SODON uuI a/ps ascifli i/Ps