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TMI Blog2012 (11) TMI 588X X X X Extracts X X X X X X X X Extracts X X X X ..... ribunal was right in law in allowing deduction under Section 80IB(10) when the assessee company has not furnished the necessary completion certificates?" 2. It is seen from the order passed by the Commissioner of Income Tax in exercise of his jurisdiction under Section 263 of the Income Tax Act that the Assessing Officer allowed the claim of deduction under Section 80IB(10) of the Income Tax Act even in respect of projects which are not covered by necessary completion certificates, as required under Section 80IB(10)(a) of the Income Tax Act. On a perusal of the records, the Commissioner, pointed out that in respect of projects Jains Sagarika, MRC Nagar, Chennai and Jains Swarnakamal, Vadapalani, Chennai, the assessee had obtained completio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... only sewerage connection and power supply connection certificates. In the circumstances, the Commissioner remitted the matter back to the Assessing Officer for examination afresh. Aggrieved by this, the assessee went on appeal before the Income Tax Appellate Tribunal questioning the jurisdiction of the Commissioner of Income Tax under Section 263 of the Income Tax Act as well as on merits. 6. Pointing out that the assessee had produced completion certificates in respect of some of the projects before the Commissioner, the Tribunal referred to the insertion of Explanation in sub-section (10) of Section 80IB of the Income Tax Act, effective from 01.04.2005 and held that the non-submission of completion certificate would not, per se, be a gr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Tribunal on the question of furnishing of completion certificate. 7. Learned counsel appearing for the assessee pointed out that the requirement regarding furnishing of the completion certificate to be produced as a condition for grant of deduction was introduced only under Finance No.(2) Act of 2004, effective from 1.4.2005. Prior to substitution, the provision, as it existed did not contain any such requirement. The Section, as it stood during the assessment year 2004-05, reads as under: "Deduction in respect of profits and gains from certain industrial undertakings other than infrastructure development undertakings 80IB(10) The amount of profits in case of an undertaking developing and building housing projects approved before the 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ority on or after the 1st day of April, 2004, on or before the 31st day of March, 2008; (ii) in a case where a housing project has been, or, is approved by the local authority on or after the 1st day of April, 2004, within four years from the end of the financial year in which the housing project is approved by the local authority. Explanation For the purposes of this clause - (i) in a case where the approval in respect of the housing project is obtained more than once, such housing project shall be deemed to have been approved on the date on which the building plan of such housing project is first approved by the local authority; (ii) the date of completion of construction of the housing project shall be tak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pment and construction of the housing project on or after 1st October, 1998. Thus, till 2005, there was no clause dealing with completion, in which event, one cannot read into the provision as a condition, which is not specifically provided for therein. 10. As far as the present case is concerned, it relates to the assessment year 2004-05. The substitution of Explanation to clause (a) to sub-section (10) of Section 80IB of the Income Tax Act was brought in under Finance No.(2) Act of 2004, effective from 01.04.2005. Thus, in the absence of any such requirement read into the Section, we find it difficult to accept the case of the Revenue that the claim for deduction has to be rejected on the ground that the assessee had not furnished ..... X X X X Extracts X X X X X X X X Extracts X X X X
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