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TMI Blog2014 (10) TMI 921X X X X Extracts X X X X X X X X Extracts X X X X ..... leave to add to, alter, amend, modify or withdraw any or all grounds of appeal. 3. The issue raised in the present appeal is in relation to the claim of deduction under section 80IB(10) of the Act. 4. The brief facts of the case are that, the assessee firm had undertaken a project for construction of residential premises viz. Ujjwal Gardens at Vadgaon Sheri, Pune Ahmednagar Road, Pune. The assessee had claimed deduction under section 80IB(10) of the Act on the profits arising from the said project. During the course of assessment proceedings, the Assessing Officer requisitioned the assessee to submit the Completion Certificate of the project. In reply, the assessee furnished copy of the sanctioned plan and the architect certificate regarding completion of wings A, B, C and D of building 'Ujjwal Garden'. The assessee was show caused by the Assessing Officer to explain as to why the deduction claimed under section 80IB(10) of the Act should not be disallowed as Completion Certificate from Pune Municipal Corporation was not received till 31.03.2008. In reply, the assessee explained that the project of the assessee fulfills all the conditions laid down in section 80IB(10) of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ipal authorities have certified that the relevant aspect of the project has been completed and also may be the flat owners have started living in the premise, but from that it cannot be said that the project is complete unless it could be shown that the project was really complete as required in law and the issuance of certificate from the local authority, though a mandatory requirement could not be obtained or issued for reasons not attributable to the appellant and for all other aspects otherwise the project is really complete. In the present case, it is observed that the litigation relates to a case wherein the appellant is a plaintiff and Pune Municipal Authority is the defendant, it is also seen from the petition filed by the appellant himself that the project was stopped from being constructed w.e.f. different dates which are relevant for A.Y. 2006-07 and thereafter, the relevant portion is quoted below for ready reference : "2.... 3..... 4..... 5..... 6....." From the perusal of the above it is clear that the project was stopped from time to time during the previous year under consideration and therefore, the claim of the appellant that the project is complete is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oration was issuing Completion Certificate to individual flat owners and no Certificate had been issued to the assessee. 7. The learned Departmental Representative for the Revenue pointed out that in the absence of any Completion Certificate and also because the assessee had failed to file any application for the Completion Certificate, the assessee was not entitled to the claim of deduction under section 80IB(10) of the Act. In respect of letters received from the ancillary department, the learned Departmental Representative for the Revenue pointed out that the same were only recommendations and reliance was placed on the orders of the authorities below. 8. We have heard the rival contentions and perused the record. The issue arising in the present appeal is in relation to the claim of deduction under section 80-IB(10) of the Act. The assessee had undertaken the project for construction of residential premises at Vadgaon Sheri, Pune Ahmednagar Road, Pune under the name and style of Ujjwal Gardens. The building plans for the said project were first sanctioned by the Pune Municipal Corporation in January, 2001 and subsequently in March, 2003 and July, 2004. The assessee had claime ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arned Authorized Representative by the assessee admitted that no such certificate has been issued till date. It was explained by the assessee in October, 2005, the Additional Commissioner, Pune Municipal Corporation issued an order asking not only the assessee firm but also all its partners, sister concerns and others to stop work at all their sites falling within the jurisdiction of Pune Municipal Corporation. The said order was issued on the basis of a complaint filed by one Shri Vasant Mahadev Deshpande, who was the land owner of another site. Against the said, the assessee filed a Suit with the Court of Civil Judge, Senior Division, Pune on 21.06.2006 against the Pune Municipal Corporation and the relief claimed in the said Suit was that if the work had to be stopped on the complaint of Shri Vasant Mahadev Deshpande then it should be related to the site of Shri Vasant Mahadev Deshpande only and work at all the other sites should not be stopped. The Civil Judge, Senior Division, Pune vide order dated 01.07.2006 lifted the restrain order passed by the Pune Municipal Corporation in respect of the other properties, which did not relate to the complainant, Shri Vasant Mahadev Deshp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat assessee had vide letter dated 05.11.2008 informed the authorities that the construction have been completed and further request was made for grant of completion certificate. However, no completion certificate was issued to the assessee and it was held by the Hon'ble High Court nonobtaining of completion certificate was not requirement to the projects which were approved prior to 01.04.205 when the amendment by the Finance Act, 2004 was made effective. 12. In the present case, the project has been approved by the local authority before 01.04.2005 within the meaning of clause (a) of section 80-IB(10) of the Act and therefore the ratio of the judgement of the Hon'ble High Court in the case of CIT vs. CHD Developers Ltd. (supra) squarely applies. However, it would be required to establish by the assessee that the construction of the project as sanctioned was completed before the stipulated date. On this aspect, assessee has been consistently pointing out before the Assessing Officer, CIT(A), as well as before the Tribunal that the construction was completed before the stipulated date. The flats have been sold and are occupied by the respective customers. It has also been pointed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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