2019 (1) TMI 1942 - HC - Income Tax

Deduction u/s. 80IB (10) - denial of deduction as assessee has not completed the project within the stipulated time - requirement of obtaining completion certificate in terms of the amendment made in respect of Section 80IB(10) - ITAT allowed the claim - HELD THAT - This issue now stands concluded against the revenue and in favour of the revenue-assessee by the decisions of this Court in case of Sai Krupa Developer 2014 (10) TMI 868 - BOMBAY HIGH COURT and M/s Krish Enterprises 2018 (3) TMI 590 - BOMBAY HIGH COURT . In the above cases this court upheld the view of the Tribunal that in cases where comment certificate has obtained before 31st March 2005, there was no requirement of obtaining completion certificate before a particular date. No substantial question of law.

Summary

Issues:
Challenge to order of Income Tax Appellate Tribunal regarding deduction u/s. 80IB (10) of the Income Tax Act, 1961 for Assessment Year 2009-10.

Analysis:
1. The appeal challenges the Tribunal's order allowing deduction u/s. 80IB (10) of the Income Tax Act, 1961. The main contention raised by the Revenue is whether the Tribunal erred in granting the deduction without considering the completion of the project within the stipulated time. The Tribunal based its decision on a previous case and the amendment made in Section 80IB(10) of the Act, which waived the requirement of obtaining a completion certificate for projects approved before 31st March, 2005. Reference was also made to a decision of the Delhi High Court in a similar case.

2. The counsel for the Revenue acknowledged that the issue has been settled against the Revenue by previous decisions of the Bombay High Court. The court referred to cases where it was held that if a commencement certificate was obtained before 31st March 2005, there was no need for a completion certificate by a specific date. The court upheld the Tribunal's view in those cases, thereby establishing a precedent that supports the assessee's position.

3. Consequently, the court found that the proposed question did not raise any substantial legal issue and, therefore, declined to entertain it. As a result, the tax appeal was dismissed, with no order as to costs being issued. The judgment reaffirmed the principle established in previous cases, providing clarity on the requirement of completion certificates for projects approved before a certain date under Section 80IB(10) of the Income Tax Act, 1961.