2016 (9) TMI 1615 - AT - Income Tax

Deduction u/s 80IB(10) - commencement of the housing project for the purpose of section 80IB(10) - Assessee not obtained completion certificate from local authority before 31.3.2008 which is mandatory as per Explanation (ii) to section 80IB(10) - Whether the approval of the local authority was obtained on 28.11.1992, ie much before 1.10.1998, the date on or after which the project approved were eligible for deduction u/s 80IB(10) ? - HELD THAT - This issue stands covered in favour of the assessee in assessee‟s own case by virtue of the order of the Tribunal for the earlier assessment years 2014 (6) TMI 1060 - ITAT MUMBAI no infirmity in the finding recorded by the Ld CIT (A) that the AO was wrong in holding that the housing project of the assessee had commenced before 1.10.1998. We uphold his order. Since, the facts and circumstances in all the three cases are identical, all the appeals filed by the Revenue are dismissed. Date of completion of the project - It is the finding of the CIT (A) that the project in question was approved prior to the amendment and therefore, the provisions relating to the due date‟ fixed in the Statute are inapplicable. However, notwithstanding the same, it is the argument of the Ld Counsel for the assessee that the housing project consists of seven‟ buildings (A to G) and the buildings A, B and C‟ were completed on 18.2.2006; buildings D, E and F‟ were completed on 3.2.2007 and finally, the building G‟ was completed on 29.3.2008 ie on or before the due date of 31.3.2008. In this regard, he brought our attention to the copies of the completion certificates enclosed to the note provided by the Ld AR dated 7.9.2016. We find, the decision given by the CIT (A) vide para 3.4 of his order is fair and reasonable and therefore, it does not call for any interference. Accordingly, Ground no.2 raised by the Revenue is dismissed.

Summary

Issues:
1. Allowance of deduction u/s 80IB(10) of the Act - Approval of local authority and commencement of the project.
2. Allowance of deduction u/s 80IB(10) of the Act - Completion certificate from local authority.

Analysis:

Issue 1:
The appeal pertains to the allowance of deduction u/s 80IB(10) of the Act based on the commencement of the housing project. The assessee contended that the issue of commencement was covered in their favor by a previous Tribunal order. The Tribunal examined the relevant findings and upheld the decision of the CIT (A) that the housing project did not commence before the specified date. The Tribunal dismissed the appeal by the Revenue, stating that the facts and circumstances were identical to previous cases, thereby rejecting Ground no.1 raised by the Revenue.

Issue 2:
Regarding the completion certificate for the project, the assessee argued that the project's approval predated the amendment, making the due date provisions inapplicable. The completion dates for different buildings within the project were provided, with the final building completed before the due date. The CIT (A) found the arguments reasonable and fair, leading to the dismissal of Ground no.2 raised by the Revenue. The Tribunal, after reviewing the facts and material presented, concluded that the decision of the CIT (A) was justifiable and did not require any intervention. Consequently, the appeal of the Revenue was dismissed.

In conclusion, the Tribunal upheld the decisions of the CIT (A) regarding both issues raised by the Revenue, leading to the dismissal of the appeal. The judgment was pronounced on 23rd September 2016.