2021 (10) TMI 467 - HC - Income Tax

Deduction u/s 80IB (10) - partial completion of project - Housing projects - assessee had not completed the entire project by the stipulated date, i.e. 31.03.2008 as the date when project was first approved - whether the housing project should be considered to be completed without the parking of building G as approved by the local authority? - completion certificate issued by the Pune Municipal Corporation was also in respect of only Buildings A, B, C, D, E, H and I and not in respect of Building G - Tribunal allowed the deduction - HELD THAT - As respondent has not claimed any deduction under Section 80IB (10) on the said building G . A question that was considered was . Undisputably the entire project excluding building G has been completed within the stipulated period and the completion/ occupancy certificate was also received within the time limit prescribed under Section 80IB (10). As TDR for building G was not available upto 2011, appellant could not have constructed the said building. As held in Vandana Properties 2012 (4) TMI 54 - BOMBAY HIGH COURT , the expression housing project is not defined under the Act and the expression housing project in common parlance should be accepted, which would mean constructing a building or group of buildings consisting of several residential units. In our view, the building G cannot be part and parcel of the housing project because the TDR for constructing building G itself was purchased on 19.04.2011. Consequently, in our view, respondent was entitled to claim of deduction under Section 80IB (10) of the Act. - Decided in favour of assessee.

Summary

Issues:
1. Eligibility for deduction under Section 80IB (10) for a housing project.
2. Interpretation of completion certificate requirements for claiming deduction.
3. Consideration of building 'G' as part of the housing project.

Issue 1:
The Respondent claimed a deduction under Section 80IB (10) for the assessment year 2008-2009 for a housing project named "Amrut Kalash." The project was approved on 31.03.2001, with completion required by 31.03.2008. The completion certificate submitted by the Respondent was dated 28.03.2008, indicating building 'G' as a parking slab only. Subsequently, the plan for building 'G' was revised in 2011 to include 48 residential units. The Appellant argued that as the completion certificate did not show building 'G' with residential units, the Respondent was not entitled to the deduction. The ITAT upheld the Respondent's claim, considering the revised plan for building 'G' as part of the housing project.

Issue 2:
The Appellant contended that the completion certificate issued by the Pune Municipal Corporation was only a part completion certificate and did not cover building 'G,' thus disqualifying the Respondent from claiming the deduction. The Respondent argued that building 'G' was conceived as a separate project after 31.03.2008, supported by a fresh plan approved in 2011. Relying on the judgment in CIT vs. Vandana Properties, the Respondent asserted that building 'G' should be considered a distinct project and not an extension of the original project.

Issue 3:
The High Court rejected the appeal, emphasizing that the original plan sanctioned in 2001 and the revised plan in 2008 both designated building 'G' as a parking slab only. The Court noted that the completion certificate for building 'G' was issued later and that the Respondent did not claim any deduction under Section 80IB (10) for building 'G.' The Court concluded that building 'G' could not be considered part of the housing project, as the TDR for its construction was purchased in 2011. Therefore, the Respondent was deemed eligible for the deduction under Section 80IB (10) for the housing project.