Summary
- The Bombay High Court has upheld the ITAT's ruling that flower bed areas, service ducts, window projections, and cupboard projections cannot be included in the built-up area for Section 80IB(10) deductions.
- This decision pertains to the assessment year 2010-11 and dismisses the Revenue’s appeal against Nahar Enterprises’ eligibility for tax deductions.
- The Court agreed that these areas are not habitable or part of the residential unit's inner measurements as defined under Section 80IB(14)(a) of the Income-tax Act, 1961.
- This ruling clarifies what constitutes built-up area for tax purposes, potentially impacting future claims by developers and builders.
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