2016 (7) TMI 388 - AT - Income Tax

Deduction u/s. 80IB(10) - Housing project Sanskriti comprising of buildings D, E and G developed by the assessee - reason for rejecting the claim of the assessee is that the project of the assessee is not complete within the specified time/due date in accordance with the clause (a) of section 80IB(10) of the Act - Held that - The Hon ble Bombay High Court in the case of Commissioner of Income Tax Vs. Hindustan Samuh Awas Ltd. (2015 (10) TMI 2306 - BOMBAY HIGH COURT ) while dealing with the similar issue where the assessee completed the housing project on time and filed an application for seeking completion certificate to the Municipal Authorities within the specified time held that the delay in issuance of certificate cannot be attributed to the assessee and the assessee was entitled for exemption u/s. 80IB(10) of the Act. - Decided in favour of assessee.

Summary

Issues:
1. Delay in filing appeal - condonation of delay.
2. Claim of deduction u/s. 80IB(10) on housing project 'Sanskriti'.

Issue 1: Delay in filing appeal - condonation of delay:
The appeal was filed 39 days beyond the limitation period. The assessee cited reasons for the delay, explaining that the absence from India during the filing period due to travel to the USA and subsequent illness upon return caused the delay. The Tribunal, after perusing the affidavit and passport copy provided by the assessee, found the delay not deliberate or willful. The Tribunal accepted the explanation and condoned the delay, admitting the appeal for further proceedings.

Issue 2: Claim of deduction u/s. 80IB(10) on housing project 'Sanskriti':
The case involved a housing project developed by the assessee, who claimed deduction u/s. 80IB(10). The dispute arose as the completion certificate from the PCMC was issued after the specified completion date of 31-03-2009. The assessee contended that the project was completed in December 2008 and applied for the completion certificate before the due date. The delay in certificate issuance was attributed to the PCMC. The Tribunal referred to a similar case before the Bombay High Court and the Tribunal itself, where delays in certificate issuance were not attributed to the assessee, leading to the allowance of the deduction. Considering these precedents, the Tribunal remitted the current appeal back to the Commissioner of Income Tax (Appeals) for fresh adjudication in line with the legal principles established in the cited cases.

In conclusion, the Tribunal allowed the appeal, setting aside the impugned order and remitting the case back to the Commissioner of Income Tax (Appeals) for a fresh decision based on relevant legal precedents.