Section 80IB(10) of the Income Tax Act

Vacant residential flats and commercial spaces held as stock-in-trade are subject to notional annual letting value calculation under Section 22 of the Income Tax Act, 1961.

When the addition made in the assessment order, on the basis of which a penalty for concealment under section 271(1)(c) is levied, is subsequently deleted, the penalty has no basis and must be cancelled.

A developer is entitled to proportionate deduction under Section 80IB(10) for housing projects even if certain conditions, such as unit built-up area limits, are not fully met across all units. Additionally, the conditions introduced by Section 80IB(10)(d) apply prospectively to projects commenced and sanctioned before April 1, 2005.

The Bombay High Court holds that for deduction under Section 80IB(10), the minimum plot area of one acre refers to the aggregate area of the land on which housing projects are developed, not necessarily to each individual project if multiple projects are undertaken on a larger single plot. This means the deduction is allowable even if a sub-block within the overall project is less than one acre, provided the total plot size meets the minimum.

An assessee should not be prejudiced by differences in accounting treatment if accounting principles are duly followed and the issue is revenue neutral, as hypothetical income cannot be subjected to tax.

Where a portion of a project exceeds the prescribed area limit under section 80IB(10), deduction can be claimed on a pro-rata basis for the eligible portion of the project.

Deduction under section 80-IB(10) is available on a proportionate basis for eligible units, even if some units in a project exceed the prescribed area limits. The entire claim should not be rejected due to partial non-compliance.

An assessee can make a claim of deduction for the first time before the appellate authorities.