2020 (8) TMI 314 - AT - Income Tax

Deduction u/s 80IB - claim denied when the project was not completed within time limit - HELD THAT - In assessment year 2010 11 and 2011 12, the assessee had preferred appeals before the Tribunal. In the course of hearing of appeal before the Tribunal, the assessee had furnished completion certificate issued by the competent authority as additional evidences. The Tribunal having found the completion certificate to be in order and being convinced with the fact that the conditions of section 80IB(10) of the Act have been fulfilled in all respect, allowed assessee s claim of deduction under the said provision while disposing off the appeals 2017 (1) TMI 445 - ITAT MUMBAI . It is worth mentioning, the aforesaid decision of the Tribunal was brought to the notice of the Assessing Officer in the course of the assessment proceedings for the impugned assessment year. However, the Assessing Officer has declined to follow the decision of the Tribunal on the flimsy grounds that he has not received a copy of the said order officially and further, that the Revenue reserves its right to contest the decision before the High Court. Once the Tribunal, being the last fact finding authority, has recorded a factual finding that the housing project was completed within the stipulated time frame and such finding of fact has also been upheld by the Hon'ble Jurisdictional High Court in assessee s own case, there is no scope for the Assessing Officer to deny assessee s claim of deduction under section 80IB(10) of the Act. No infirmity in the decision of learned Commissioner (Appeals) in allowing assessee s claim of deduction under section 80IB(10) - Decided against revenue.

Summary

Issues:
Challenge to deduction under section 80IB of the Income Tax Act for incomplete project.

Analysis:
The appeal was filed by the Revenue against the order of the Commissioner of Income Tax (Appeals) regarding the deduction under section 80IB for the assessment year 2014-15. The Revenue contested the justification of allowing the deduction when the project was not completed within the time limit. The assessee, a partnership firm, had claimed the deduction for a housing project named Mayuresh Residency in Mumbai. The Assessing Officer disallowed the deduction based on similar disallowances in previous assessment years. The assessee appealed, citing previous Tribunal decisions in their favor for the same project. The Tribunal had allowed the deduction in previous years, confirming the project's completion within the specified time frame. The Revenue's appeal was based on the Assessing Officer's observations, despite the Tribunal's previous decisions favoring the assessee.

The Tribunal found that the housing project was completed before the specified cut-off date, making the assessee eligible for the deduction under section 80IB. The Assessing Officer's denial of the deduction in the current year was solely based on previous disallowances and the absence of a completion certificate. However, the Tribunal noted that in previous years, the completion certificate was provided during the appeal process and was accepted as valid evidence. The Tribunal emphasized that since the completion of the project within the stipulated time frame was a factual finding upheld by the High Court in previous appeals, the Assessing Officer had no grounds to deny the deduction. The Tribunal dismissed the Revenue's appeal, upholding the decision of the Commissioner (Appeals) to allow the deduction under section 80IB for the housing project.

In conclusion, the Tribunal affirmed the decision of the Commissioner (Appeals) to allow the deduction under section 80IB for the housing project, as the completion within the specified time frame had been established through previous Tribunal decisions and High Court rulings. The Revenue's appeal was dismissed, and the Tribunal upheld the assessee's claim for the deduction.