2019 (4) TMI 1031 - AT - Income Tax

Deduction u/s.80IB(10) - AO denied the said claim for want of valid Completion/Occupancy certificate and other relevant evidences - admission of additional evidences which includes the completion certificate - HELD THAT - The validity of the said completion certificate and its issuance is the subject matter of litigation and the same goes to the root of the matter relating to the valid claim of deduction u/s. 80IB(10) of the Act. Accordingly, we order the Revenue authorities to admit the additional evidences and re-adjudicate the only issue of claim of deduction u/s.80IB(10) of the Act. - Matter restored before ITAT.

Summary

Issues involved:
- Rejection of claim of deduction u/s.80IB(10)
- Charging of interest u/s.234B
- Admission of additional evidences

Rejection of claim of deduction u/s.80IB(10):
The appeal was filed against the order of CIT(A)-12, Pune, regarding the Assessment Year 2011-12. The assessee, a partnership firm engaged in construction, claimed a deduction of ?9,74,91,682/- u/s.80IB(10) for a residential project named "Kasliwal Marvel." The AO denied the claim due to non-completion of the project, a decision upheld by the CIT(A). The assessee submitted additional evidence, including a completion certificate issued by the Aurangabad Municipal Corporation, to support their claim. The Tribunal found the additional evidence significant and relevant, admitting it for re-adjudication by the AO. The impugned order was set aside, and the issue was remitted back to the AO for fresh assessment, with directions to provide a reasonable opportunity of being heard to the assessee.

Charging of interest u/s.234B:
One of the grounds raised in the appeal was the charging of interest u/s.234B. However, the Tribunal did not provide a specific analysis or decision on this issue in the judgment. Hence, no detailed analysis or outcome is provided regarding the charging of interest u/s.234B in this judgment.

Admission of additional evidences:
The assessee submitted additional evidence, including the reinstated completion certificate and other related documents, during the proceedings before the Tribunal. The Tribunal, after considering objections raised by the Revenue, found the additional evidence relevant and crucial to the claim of deduction u/s.80IB(10). The Tribunal ordered the Revenue authorities to admit the additional evidence and re-adjudicate the issue of the claim of deduction u/s.80IB(10). The Tribunal allowed the grounds raised by the assessee for statistical purposes and pronounced the appeal as allowed on a statistical basis on April 16, 2019.