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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 ..... urt that local authority includes Delhi Development Authority. 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.Here are various judgments of various High Courts in which, it was held that even if completion certificate is not issued but it is otherwise established that the project was completed, deduction u/s 80IB (10) is allowable. Dis-allowance of expenses - We find that a clear finding has been given by CIT(A) 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 find that a clear finding is given by CIT(A) that those flats for which premium was paid by the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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) (a) of the Act. 6. The Ld. Commissioner of Income-tax (A) has erred in law in accepting the UP Avas evam Vikas Parishad as local authority for section 80 IB (10) even when the assessee failed to furnish any evidence to show that the project is located in the area for which the Parishad has been notified by the UP Govt. to exercise the powers and function of a local authority. 7. The Ld. Commissioner of Income-tax (A) has erred in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 electricity department along with the streets and diagrams are available on pages 53 to 55 of the paper book and the same is dated 28/07/2005. He also pointed out that on page No. 56 is the copy of house tax bill dated 09/10/2004 in the name of the assessee. He also drawn our attention to page No. 49 of the paper book, which contains copy of demand notice issued by electricity department on 05/08/2004. He also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 produced which are dated much prior to 31- 3-2008. The Sale Deeds can only be executed for completed flats and further the electricity connections are also sanctioned for completed flats. 7. In the above Para, a clear finding has been given by learned CIT(A) that the assessee has filed photocopy of the electricity bills of majority of the flats and has also noted that the sale deeds were executed i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m 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 reference:- 13.2 I have considered the submissions made on behalf of the appellant as well as the order of the AO. The appellant has given a chart regarding the rate, area, flat nos., amount of premium paid and also the copies of the Return and Computation of five flat owners. These flats were further sold for higher amounts, which is apparent from the copies of the sale d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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