2012 (2) TMI 278 - AT - Income Tax

Deduction - Projects to be completed within time after approvals - Facts Hill Side and Silver Valley different projects - Land transferred on 9.02.05 and 10.02.05 - Building Plan approved and Commencement Certificate received on 30.04.05 - Held That - Completion time for above projects were 31.03.10 and when the above projects are completed on 18.11.09 it is well within stipulated time. Decided against revenue.

Summary

Issues:
1. Allowance of deduction u/s 80IB(10) by the Commissioner of Income-tax (Appeals) contrary to law.
2. Interpretation of the commencement certificate date for completion of the housing project.
3. Dispute over the completion date of a specific flat within the project.

Analysis:
1. The case involved a dispute regarding the deduction u/s 80IB(10) claimed by the assessee firm for the project "Hill Side." The Assessing Officer (AO) denied the deduction based on the project's history with another firm and the date of approval by the Pune Municipal Corporation (PMC). The Commissioner of Income-tax (Appeals) allowed the deduction after considering the remand report and submissions of the assessee.

2. The main contention was whether the original commencement certificate dated 12-09-2001 or the revised certificate dated 30.04.2005 should be considered for determining the completion date of the project. The AO argued that the project should have been completed by 31st March, 2008, based on the initial approval date. However, the assessee justified that the project "Hill Side" was distinct from the previous project and was completed within the stipulated time frame based on the revised commencement certificate.

3. The dispute also involved a specific flat in Building "A" that was not completed by 31st March, 2008, raising concerns about the eligibility for the deduction. The assessee argued that the project as a whole was completed within the prescribed time limit, and the AO accepted the explanation provided, leading to the allowance of the deduction by the Commissioner of Income-tax (Appeals).

The Tribunal upheld the Commissioner's decision, emphasizing that the project "Hill Side" was different from the initial project and the completion date should be calculated based on the revised commencement certificate. The Tribunal found no discrepancy in the first appellate order and rejected the grounds raised by the Revenue. Consequently, the appeal was dismissed on 6th January 2012.