*
*Instruction No. 4/2009, dated 30-6-2009*
Under sub-section (10) of section 80-IB an undertaking developing and
building housing projects is allowed a deduction of 100% of its profits
derived from such projects if it commenced the project on or after 1.10.1998
and completes the construction within four years from the financial year in
which the housing project is approved by the local authority.
2. Clarifications have been sought by various CCsIT on the issue whether the
deduction u/s 80-IB(10) would be available on a year to year basis where an
assessee is showing profit on partial completion or if it would be available
only in the year of completion of the project u/s 80-IB(10).
3. The above issue has been considered by the Board and it is clarified as
under:-
(a) *The deduction can be claimed on a year to year basis where the assessee
is showing profit from partial completion of the project in every year.*
(b) *In case it is late, found that the condition of completing the project
within the specified time limit of 4 years as started in section 80-IB(10)
has not been satisfied, the deduction granted to the assessee in the earlier
years is should be withdrawn.
*
4. The above Instruction will override earlier clarififcation on this issue
contained in Member(R)’s D.O. letter No. 58/Misc./2008/CIT(IT&CT) dated
29.04.2008 and Member (IT)’s D.O. letter No. 279/Misc./46/08-ITJ dated
2.5.2008.
5. This may kindly be brought to the notice to the notice of the all
Assessing Officers in your charge.