9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (11) TMI 588 - HC - Income TaxDeduction u/s 80IB Held that - As the assessee had produced the completion certificate in respect of the projects Jains Sagarika, MRC Nagar, Chennai and Jains Swarnakamal, Vadapalani, Chennai and the projects at Velacherry, Chitlapakkam and Virugambakkam. As far as the projects at Manapakkam and Pallavaram are concerned, if the assessee had submitted certificates from sewerage and Electricity Board, which according to the Commissioner would not satisfy the requirement of the Rules, as already pointed out, in the absence of any requirement under Section 80IB(10)(a) of the Income Tax Act and going by the provision, as it stood during relevant assessment year, 2004-05, it is difficult to accept the contention of the Revenue that the claim for deduction rested on the assessee s production of completion certificates - appeal filed by the Revenue is rejected.
Issues:
1. Interpretation of Section 80IB(10) of the Income Tax Act regarding deduction eligibility without completion certificates. Analysis: The High Court of Madras heard an appeal by the Revenue challenging the Tribunal's decision allowing deduction under Section 80IB(10) of the Income Tax Act for the assessment year 2004-05 without the assessee furnishing necessary completion certificates. The Commissioner of Income Tax had set aside the assessment order, directing verification of completion certificates for various projects. The Court noted that completion certificates were obtained for some projects like Jains Sagarika, MRC Nagar, and Jains Swarnakamal, while others like Jains Prakriti at Bangalore had discrepancies. The Tribunal referred to an Explanation in Section 80IB(10), effective from 01.04.2005, stating that the non-submission of completion certificates alone cannot be a ground for rejection. The Court highlighted that prior to the 2005 amendment, there was no obligation to file completion certificates, and the deduction provision granted 100% deduction for profits from housing projects without specifying completion certificate requirements. Regarding the project Jains Prakriti at Bangalore, the completion certificate was dated after the assessment, and the Commissioner raised concerns about unit sizes exceeding limits. The Tribunal upheld the Commissioner's order for further verification. The Court emphasized that prior to the 2005 amendment, the absence of completion certificate requirements in Section 80IB(10)(a) for the assessment year 2004-05 made it challenging to reject the deduction claim solely on completion certificate grounds. The Court rejected the Revenue's appeal, noting that the assessee had produced completion certificates for certain projects and that the absence of specific completion certificate requirements in the law during the relevant assessment year made it difficult to uphold the Revenue's contentions. Consequently, the Tax Case (Appeal) was dismissed by the Court. In conclusion, the Court's judgment focused on the interpretation of Section 80IB(10) of the Income Tax Act regarding the eligibility for deduction without completion certificates. The Court highlighted the absence of completion certificate requirements in the law during the relevant assessment year and emphasized that the deduction provision did not explicitly mandate the submission of completion certificates. The Court rejected the Revenue's appeal, emphasizing that the assessee had produced completion certificates for some projects and that the absence of specific completion certificate requirements in the law made it challenging to reject the deduction claim solely on completion certificate grounds.
|
