2016 (10) TMI 1346 - AT - Income Tax

Deduction under section 80IB(10) - date of 'commencement of the housing project for the purposes of the claim of deduction - HELD THAT - This aspect of the controversy stands covered by the decision of the Tribunal 2014 (6) TMI 1060 - ITAT MUMBAI on the basis of the earlier approval obtained by M/s. Gas Property Developers, which has already lapsed, and the expenses were on account of repair of boundary wall the project cannot be stated to have been commenced before 01.10.1998. Therefore, we find no infirmity In the findings recorded by the learned CIT(A) that the AO was wrong in holding that the housing project of the assessee had commenced before 01.10.1998. We uphold his order. As assessee pointed out that housing project consisted of seven buildings and in respect of A,B,C,D,E,F and G wings occupancy certificates were obtained and possession handed over to flat purchasers who started residing in the allotted flats. It is pointed out that the occupancy certificate issued by the Local Authorities clearly proves that the work in respect of the habitable area of the housing project was complete in all respects. All these facts have not been controverted before us, and the same have been duly considered and accepted by the Tribunal in its order dated 23/9/2016(supra) for assessment year 2011-12. In view of the precedent in the case of assessee for assessment year 2009-10(supra) and assessment year 2011-12(supra), wherein identical situation in relation to the very same project has been considered, we find no reason to interfere with the decision of the CIT(A) in allowing the claim of the assessee, which is in line with the aforesaid precedents. As a consequence, on this aspect also, the order of the CIT(A) is affirmed and Revenue fails.

Summary

Issues Involved:
- Deduction under section 80IB(10) of the Income Tax Act for assessment years 2007-08 & 2010-11.

Analysis:
1. The appeals filed by the Revenue relate to the same assessee for assessment years 2007-08 & 2010-11. The issues involved are common, so they were clubbed and heard together. The primary issue was the deduction under section 80IB(10) of the Income Tax Act.

2. The appeal for the assessment year 2007-08 was considered as the lead case. The dispute revolved around the commencement date of the housing project for claiming the deduction under section 80IB(10) of the Act. The Tribunal had previously decided a similar case in favor of the assessee. The Tribunal upheld the CIT(A)'s decision, which favored the assessee, based on the commencement date issue.

3. The second ground of appeal concerned the completion date of the project. The Assessing Officer contended that since the project was not completed before 31/03/2008, the deduction under section 80IB(10) could not be allowed. However, the CIT(A) and the Tribunal found in favor of the assessee, noting that the construction work was completed, occupancy certificates were obtained, and possession was handed over to flat purchasers before the relevant dates.

4. The Tribunal referred to precedents from assessment years 2009-10 and 2011-12, where similar issues were decided in favor of the assessee. The Tribunal found no reason to interfere with the CIT(A)'s decision to allow the deduction under section 80IB(10) for both assessment years 2007-08 and 2010-11. Consequently, the appeals of the Revenue for both assessment years were dismissed.

5. The decision in the lead case for assessment year 2007-08 applied mutatis mutandis to the appeal for assessment year 2010-11, as the facts and circumstances were similar. Therefore, the appeals of the Revenue for both assessment years were dismissed based on the consistent application of the law and precedents.

This detailed analysis of the judgment highlights the key legal arguments, decisions, and reasoning involved in the case regarding the deduction under section 80IB(10) of the Income Tax Act for the mentioned assessment years.