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Issues involved: Interpretation of Section 80IB(10) of the Income Tax Act, 1961 regarding deduction and requirement of Project Completion Certificate.
Interpretation of Section 80IB(10): The appeal questioned whether the Tribunal was correct in allowing deduction under Section 80IB to the respondent without fulfilling the basic condition of completing the project on a minimum one-acre plot of land. The Tribunal, considering the section as a whole and CBDT instruction No.4 of 2009, clarified that the Project Completion Certificate is not necessary for claiming the benefit under the section. The deduction can be claimed on a year-to-year basis even without the Certificate, as long as the conditions are met. The Tribunal emphasized that if the project completion time limit is not adhered to, deductions granted earlier should be withdrawn. Requirement of Project Completion Certificate: Another issue raised was whether the respondent was entitled to deduction under Section 80IB(10) despite not producing the Project Completion Certificate as required by the statute. The Tribunal's decision was based on the understanding that the Certificate is not mandatory for granting deductions under the section. The Tribunal's interpretation was supported by the CBDT instruction, which allowed for deductions based on yearly profits from partial project completion without insisting on the Certificate. Conclusion: The High Court, led by the Chief Justice Sri Kalyan Jyoti Sengupta, upheld the Tribunal's decision, stating that the Completion Certificate was not a prerequisite for availing deductions under Section 80IB(10). The Court found no legal basis to challenge the Tribunal's ruling and dismissed the appeal accordingly.
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