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TMI Blog2015 (4) TMI 907X X X X Extracts X X X X X X X X Extracts X X X X ..... e absence of approved project report, the AO was legally bound not to allow the deduction as the fulfillment of various conditions as prescribed under sub clauses- a, b, c & d of section 80IB (10) could not be examined by the A.O. 3. The Ld. Commissioner of Income-tax (A) has erred in law and without appreciating that the deduction u/s 80 IB (10) cannot be allowed unless the project is completed within the stipulated time period provided u/s 80IB (10) (a) and the completion certificate is also issued by the local authority by the date provided under the aforesaid section 80IB (10) (a) and in the instant case, such date is 31.03.2008. 4. The Ld. Commissioner of Income-tax (A) has erred in law and on facts in allowing the deduction u/s 80 IB(10) without appreciating that the completion certificate has not been issued by the local authority by the prescribed date of 31.3.2008. 5. The Ld. Commissioner of Income-tax (A) has erred in law and on facts in accepting the few sale deeds and electricity connections as proof of completion of the project in place of completion certificate from local authority which is not acceptable in terms of the explanation (ii) below sub clause 80 IB (10 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t authority and there is no completion certificate issued by the competent authority and therefore, deduction u/s 80IB(10) is not allowable to the assessee. 4. As against this, Learned A.R. of the assessee supported the order of learned CIT(A). He also submitted that the approval is already obtained from U.P. Avas Avam Vikas Parishad on 21/06/2003 and the approval letter is available on pages 51 to 52 of the paper book. Regarding completion of the project, it was submitted that application was made on 23/07/2007 for issue of completion certificate and he submitted a copy of such application duly received by U.P. Avas Avam Vikas Parishad on 23/07/2007. He also submitted that although the completion certificate has not been received from such authority till date, but other materials available on record establish that the project was completed. He submitted that flats constructed by the assessee were sold and sale deeds executed. He further submitted that copies of such sale deeds are available on pages 59 to 168 of the paper book. He also submitted that on pages 57 and 58 is NOC issued by fire Department on 26/10/2002. He also submitted that copy of sanction letter issued by electri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and came into existence in 1970s and this is well known fact that this is the approved scheme of the State Government. Considering all these facts and legal position, in our considered opinion, there is no infirmity in the order of CIT(A) on this aspect. 6. Regarding the second aspect i.e. regarding completion of the project, we find that although the completion certificate has not been issued but the assessee has already made application for issue of completion certificate on 23/07/2007, copy of which is available on record. Moreover, Para 10.7 from the order of CIT(A) is very relevant on this aspect and which is reproduced below for the sake of ready reference:- "10.7 The last point raised by the Assessing Officer is that there is no document from which an inference can be drawn regarding completion of project. It is observed by me that the project was sanctioned on 21-6-2003 and thus the last day for completion of the project is 31-3-2008. The assessment order is dated 28-12-2007 which is prior to the due date for completion. The appellant has filed the photocopies of the Electricity Bills of majority of the Flats. Moreover, the Sale Deeds executed of Flat owners were also pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10.1 From the above Para from the order of CIT(A), we find that a clear finding has been given by him that the Assessing Officer while making this disallowance has not brought any specific material on record and in absence of any specific finding on this addition, the addition cannot be sustained. He has also given a finding that as the entire earnings of the assessee from the project is deductible u/s 80IB(10), there is no question of claiming higher expenses and any addition, even if made, shall increase the deduction available u/s 801B(10). We have already decided that the assessee is eligible for deduction u/s 80IB(10) and therefore, both these issues are of academic interest only. Considering all these facts, we decline to interfere in the order of CIT(A) on this issue also. Accordingly, ground no. 7 & 8 are also rejected. 11. Regarding ground No. 9 & 10, Learned D. R. of the Revenue supported the assessment order whereas learned A. R. of the assessee supported the order of learned CIT(A). 12. We have considered the rival submissions. We find that this issue was decided by learned CIT(A) as per Para 13.2 of his order, which is reproduced below for the sake of ready referen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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