Open Terrace/Portico Excluded While Computing Built-Up Area To Determine Eligibility For Deduction U/S 80-IB Of IT Act: Telangana High Court

The Telangana High Court has ruled that an open terrace/portico should be excluded while computing the built-up area for determining eligibility for deduction under Section 80-IB of the Income Tax Act. This decision clarifies that such open spaces, which are not typically enclosed or used for habitation, should not be included in the calculation that determines tax incentives for housing projects. The ruling provides significant relief and clarity to real estate developers and assesses involved in housing projects, ensuring a more accurate interpretation of tax benefits. It helps in precisely defining the scope of built-up area for tax purposes.