CIT vs. Hermes Developers (Bombay High Court)

DATE: November 27, 2014 (Date of pronouncement)
DATE: November 28, 2014 (Date of publication)
AY: 2003-04 & 2004-05
FILE: Click here to download the file in pdf format
S. 80IB(10): Super built-up area cannot be equated with built-up area

The concept of “super built-up” area is used by builders to get higher price and the super built-up area includes common area of stair-case and balcony area. Since super built-up area cannot be equated with built-up area it cannot be stated in the instant case that the area of the flat is more than 1500 sq. ft. There is no doubt that it is the housing project and it does not include any commercial premises. Built-up area is also defined in section 80-IB(14)(a). The words including projections and balconies were inserted with effect from 1st April, 2005 Finance Act of 2004. The question whether the definition of built up area with effect from 1st April, 2005 was prospetive or retrospective in nature has been considered by this Court in Income Tax Appeal No.3315 of 2010 between the Commissioner of Income-Tax-15, Mumbai vs. M/s.Tinnwala Industries which holds that this definition which has been brought on the statute book with effect from 1st April, 2005 would not apply to such projects which are completed prior to 1st April, 2005. There are no distinguishing features brought on record which calls for any interference. The tribunal view is a well reasoned and cannot be said to be perverse.

Leave a Reply

Your email address will not be published. Required fields are marked *