2014 (4) TMI 1175 - AT - Income Tax

Claim for exemption under section 80IB(10) - requisite completion certificate had not been obtained and submitted - Held that - The assessee could not establish that it has made application to the concerned authority for completion of project on 14/03/2008. In fact, we have noted that as per the documents available on page No. 109, it appears that this application dated 14/03/2008 was in respect of construction of project to be done and not for any completed project. Hence, in the facts of the present case this issue against the assessee by following the earlier Tribunal decision in assessee s own case for assessment year 2006- 07. - Decided against assessee. Revenue s appeal in respect of the area of the land being one acre or not - Held that - We find that even as per letter dated 17/01/2013, it is stated by the Assessing Officer that on this issue, the Tribunal decision dated 08/04/2010 is in favour of the assessee but since the Department has not accepted this Tribunal order and filed an appeal before Hon ble High Court, this ground has been raised by the Revenue. Since the issue involved in the Revenue s appeal is covered against the Revenue, we, decline to interfere in the order of learned CIT(A) on this aspect. In the result, the appeal of the Revenue is dismissed.

Summary

Issues Involved:
1. Eligibility for deduction under Section 80IB(10) based on the completion certificate.
2. Area of the plot of land being a minimum of one acre.

Issue-wise Detailed Analysis:

1. Eligibility for Deduction under Section 80IB(10) Based on the Completion Certificate:

The primary dispute revolves around whether the assessee is eligible for deduction under Section 80IB(10) of the Income Tax Act, considering the completion certificate's date. The assessee claimed that the project was completed before the stipulated date of 31.03.2008. However, the completion certificate was issued on 23.10.2009. The assessee argued that the essence of the requirement was met, citing previous Tribunal orders and judgments from the Gujarat and Delhi High Courts.

The Tribunal examined the facts and previous orders, noting that the completion certificate issued by the local authority is the determining factor for the project's completion date. Despite the assessee's claim of applying for the certificate before the deadline, the Tribunal found that the application dated 14.03.2008 was for map approval, not the completion certificate. Consequently, the Tribunal upheld the CIT(A)'s decision, denying the deduction under Section 80IB(10) as the project was not completed by 31.03.2008.

2. Area of the Plot of Land Being a Minimum of One Acre:

The Revenue contested the CIT(A)'s reliance on previous ITAT orders from assessment years 2005-06, 2006-07, and 2007-08, which held that the assessee met the requirement of the plot area being a minimum of one acre. The Revenue argued that the assessee undertook three plots, which did not constitute a single plot of one acre.

The Tribunal noted that the issue had been previously decided in favor of the assessee by the ITAT, and the Revenue's appeal on this matter was pending before the High Court. Given the existing Tribunal decision supporting the assessee, the Tribunal declined to interfere with the CIT(A)'s order on this aspect, thereby dismissing the Revenue's appeal.

Combined Result:

Both the Cross Objection by the assessee and the appeal by the Revenue were dismissed. The Tribunal's decision was pronounced in the open court, affirming the CIT(A)'s order regarding the denial of deduction under Section 80IB(10) and the area of the plot of land.