Courtyard of residential unit isn’t includible in built-up area to determine section 80-IB(10) relief, rules High Court

COMMONWEALTH DEVELOPERS V. ACIT [2014] 44 taxmann.com 303 (Bombay)

Area of courtyard appurtenant to residential unit is not to be included to compute built-up area in terms of section 80-IB(10)

The High Court held in favour of assessee as under: 

• Section 80-IB(14)(a) prescribes that in order to avail of the deduction, the built-up area of the residential unit cannot exceed 1500 square feet. In order to be treated as a 'built -up area' some construction has to be in existence in such area.
• Unless and until it is shown that some construction is there, the area of the courtyard which is open to the sky, cannot be included to compute the built-up area.
• The meaning of a courtyard in the Legal dictionary, inter alia, signifies a space of land around a dwelling house which might be enclosed, appurtenant to which buildings and structures may be erected;
• Thus, area of courtyard could not be included to calculate the built-up area in terms of section 80-IB(10). The Tribunal had misconstrued the provisions of Act and the material on record to deny the benefit of deduction to the assessee in terms of section 80-IB(10).