ITAT : Eligible projects’ income, not overall business loss, relevant for Builder’s Sec. 80IB(10) claim

Pune ITAT rejects Revenue’s action of invoking Sec. 80AB to deny assessee-builder’s Sec. 80IB(10) claim for AY 2009-10; During relevant AY, assessee had earned profits from eligible projects and incurred loss in non-eligible projects, thereby resulting in overall loss under the head `Profits and gains of business or profession’, accordingly AO had invoked Sec. 80AB and denied assessee’s claim of deduction u/s. 80IB(10); Rejects Revenue’s action of considering loss from non-eligible projects and eventually total business loss for making assessee ineligible for deduction u/s.80IB(10); Referring to Sections 80AB & 80B(5), ITAT opines that, “it is the income of the eligible projects alone which should be considered on standalone basis, rather than the income under the head `Profits and gains of business or profession’, for the purposes of granting deduction, albeit with the overall ceiling of the gross total income.”; ITAT states that since the amount of eligible income, as claimed by the assessee, is less than the amount of gross total income, the provisions of Sec. 80AB do not apply adversely to such a situation.:ITAT