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TMI Blog2012 (4) TMI 749X X X X Extracts X X X X X X X X Extracts X X X X ..... evelopment and building impugned housing project has been done by the assessee firm from its own money the deduction of ₹ 1,11,55,537 claimed u/s 80IB(10) could not be denied to the assessee. 3. That on the facts and in the circumstances of the case, the learned CIT(A) erred in law and facts in not appreciating the fact s that it was the assessee firm who acquired lands which was more than one acre, incurred expenditure on approval of plans and permission from the local authorities and other Govt. authorities in engaging architects, engineers structural consultants designing and planning of housing projects, civil works, plumbing and sanitary work, inside and outside of the buildings, arrangement for water, supply, drainage works including sewage water disposal arrangements, electrical works inside the building and outside roads, hiring machines and obtaining connection from electricity department for the project, construction of pump house underground and overhead tanks for water supply and installation of electricity operated pumps wide advertisements repeatedly in newspapers and on hoardings and all other items of work and amenities as required by the project therefo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome of ₹ 1,58,470/- after claiming deduction u/s 80IB(10) of the Act for ₹ 1,11,55,537/-. In the course of assessment u/s 143(3) of the Act, the AO declined the claim of deduction u/s 80IB(10) of the Act which was further confirmed by the learned CIT(A) and the assessee is in further appeal before us. 3. From record we find that during the year, under consideration, the assessee has undertaken a housing project under the name of Vardhman Green Park at Khasra Nos. 36, 38 and 41, Kitoniya Kachiyan, Gram Sherma Kala, Bhopal. The approval for the project was obtained from the Municipal Corporation on 13.12.2004 and 10.5.2005. The assessee applied for issuance of completion certificate to the Municipal Corporation on 29.11.2007. However, the completion certificate was issued on 6.6.2009. 4. The AO stated that the assessee is merely a contractor and has not developed any housing project. He observed that no registry was made for the construction work done by the assessee firm, there was registry of land only and after completing the construction work as per the agreement, the houses were handed over to the customers. Thus, as per the AO, no project, as a whole, was co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... D. Patil Sons; 35 SOT 171 he contended that the assessee was not eligible for claim of deduction u/s 80IB(10) of the Act in terms of Explanation so inserted. We have carefully gone through the decision in the case of B.D. Patil Sons (supra), the facts of which are entirely different wherein the claim was made for deduction u/s 80-IA in respect of development, maintenance and operation of infra-structure facilities. However, in the instant case before us, the claim of the assessee u/s 80IB(10) is with respect to the housing project and not for any infra-structure facility. Accordingly, the proposition laid down therein cannot be applied to the assessee s case. There is no dispute to the well settled proposition to the effect that the claim of deduction under section 80IB(10) of the Act is only available to the developers and not to the contractors, meaning thereby that in addition to the construction of the houses, the assessee is also required to undertake development of infra-structure facilities like severages, electricity, roads, etc. Thus, mere construction of the houses does not come under the purview of the definition of developer . In the instant case, it is not clear a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ficate for the housing project was not issued. The assessee has also placed this letter along with synopsis which has been obtained under RTI Act from the office of the Municipal Corporation, Bhopal. The issue with regard to the date on which completion certificate is required to be issued has been dealt with by the coordinate Bench of the Tribunal vide its order dated 6.12.2010 in the case of D.K. Construction, ITA No. 243/Ind/2010 30.11.2011, wherein following was the precise observation of the Bench :- 7. We have considered the rival contentions, carefully gone through the orders of the authorities below and relevant material placed on record towards which our attention was invited during the course of hearing by the ld. Authorized Representative and the ld. Senior D.R. Provisions of Section 80IB allows claim for deduction in respect of housing project, which has been approved prior to 1.4.2004 and also completed before 31.3.2008. During the course of assessment with regard to assessee s claim of deduction u/s 80IB in respect of its D.K.Honey Homes Project, the AO has asked the assessee to furnish the certificate of completion of this project M/s. D.K. Honey Homes. The AO a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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