2012 (3) TMI 687 - AT - Income Tax

Summary

Issues Involved:
1. Opportunity to defend.
2. Disallowance of claim u/s 80IB.
3. Consideration of evidence.
4. Reliance on photograph.
5. Completion of project within stipulated time.

Summary:

1. Opportunity to Defend:
The assessee contended that a fair, proper, and meaningful opportunity was not afforded to put up a defense on the disputed issues. However, the judgment does not provide specific details on this issue, focusing instead on the substantive matters of the case.

2. Disallowance of Claim u/s 80IB:
The primary issue was the disallowance of the assessee's claim for deduction u/s 80IB(10). The Assessing Officer (AO) declined the claim on the grounds that the assessee had not obtained a completion certificate for the housing project. The CIT(A) upheld this disallowance, stating that the assessee did not fulfill the conditions laid down in clause (a)(i) read with Explanation (ii) of Section 80IB(10). The Tribunal confirmed that the completion certificate is a pre-condition for the deduction u/s 80IB(10).

3. Consideration of Evidence:
The assessee argued that the AO overlooked the papers and evidence furnished during the assessment. The Tribunal reviewed the records and found that the housing project was required to be completed by 31st March 2008, and a completion certificate was necessary. Since the assessee did not obtain this certificate, the claim for deduction was rightly disallowed.

4. Reliance on Photograph:
The CIT(A) upheld the AO's findings based on a photograph of house no. 84, which was deemed incomplete. The assessee contended that no deduction was claimed for house no. 84 as it was outside the scheme. The Tribunal did not find this argument sufficient to overturn the disallowance since the completion certificate for the entire project was not obtained.

5. Completion of Project within Stipulated Time:
The assessee claimed that the project was completed by 31st March 2008 and applied for the completion certificate on 15th January 2008, with reminders sent to the Municipal Corporation. The Tribunal noted that the completion certificate was not issued, and as per the provisions of the M.P. Municipal Corporation Act, 1956, the certificate is deemed issued if not granted within 15 days. However, the Tribunal found that the assessee did not meet the statutory requirement of obtaining the completion certificate, thus disallowing the deduction u/s 80IB(10).

Conclusion:
The Tribunal dismissed the appeals, confirming the disallowance of the deduction u/s 80IB(10) for the assessment years 2006-07 and 2007-08 due to the absence of a completion certificate, which is a mandatory requirement for the claim. The judgment emphasized the necessity of adhering to statutory requirements and the conditions laid down in the Income-tax Act.