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TMI Blog2015 (10) TMI 530X X X X Extracts X X X X X X X X Extracts X X X X ..... de necessary enquiries with the Fire department and has come to know of the fact that the construction could not be commenced without obtaining the NOC from the Chief fire Officer. We notice that the Ld CIT(A) has duly considered the NOCs issued by the Chief Fire Officer and also the remand report and accordingly held that the construction has commenced after the first day of October, 1998. Since the first appellate authority has endorsed the view expressed by the assessing officer in the remand report, normally the revenue should not get aggrieved by the order passed by Ld CIT(A). Still, the revenue has filed this appeal challenging the finding given by the first appellate authority on the basis of the view expressed by the AO. Hence, w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the earlier years in respect of Buildings numbered as T-34 T-35 was not considered. The assessee also could not give satisfactory explanation in that regard. Accordingly, the AO rejected the claim of deduction to the extent of ₹ 16,08,530/- relating to T-34 T-35 and the same was also upheld by the Ld CIT(A). The assessee seems to have accepted this disallowance. 4. In respect of buildings numbered as T-36 T-37, the AO noticed that the IOD for the building was issued for the first time on 10-07-1997. The assessee obtained the IOD second time on 21.04.2003. Since the first IOD was obtained on 10-07-1997, the AO took the view that the assessee has commenced the project prior to 01-10-1998, thus violating the condition prescri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion appears to have started around the period of the date of NOC. Accordingly, the Ld CIT(A) held that the assessee has commenced the development and construction of T-36 T-37 project after the first day of October, 1998 as evidenced by the NOC given by the Fire authority and also the remand report furnished by the AO. The Ld CIT(A), after examining the facts available in the case with regard to the compliance of other conditions prescribed, held that the assessee has satisfied all other conditions prescribed in sec. 80IB(10). Accordingly, he directed the AO to allow deduction claimed u/s in respect of block numbered as T-36 T-37. Aggrieved by the order of Ld CIT(A), the revenue has filed this appeal before us. 6. We have heard the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lanation as under:- By the help of this Explanation, the legislature has defined the date of commencement of the housing project as the date on which the housing project was first approved by the Local Authority. This is the reason why this Explanation forms part of the same Thus, it appears that the assessing officer has taken the view that the date of approval should be considered as the date of commencement of the project also. The said view entertained by the AO is apparent from the following observations made by him in the assessment order:- In the above circumstances, the submission of the assessee that it commenced construction activity after 1/10/1998 will not change the date of commencement of the project as envisage ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er of CFO, it appears that the NOCs are issued by the Fire Department for construction of building before the actual construction commences. In this case both the NOCs are dated 13.3.2003 and 27.6.2001, i.e., well after the cut of date of 1.10.1998. Therefore the construction appears to have started around the period of the date of NOC. Therefore the Revenue has no objection in admitting the additional evidence and considering the same on merits as the Ld CIT(A) may deem fit. 8. We notice that the Ld CIT(A) has duly considered the NOCs issued by the Chief Fire Officer and also the remand report and accordingly held that the construction has commenced after the first day of October, 1998. Since the first appellate authority has endorsed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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