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TMI Blog2019 (2) TMI 1440X X X X Extracts X X X X X X X X Extracts X X X X ..... e commenced and completed once it is approved by the concerned public authority. The approval in question was admittedly given on 30th September 1998 and therefore, the commencement of the project could only take place thereafter. There is no dispute that the project in question was completed before outer and cut off date, namely 31st March 2008. Therefore, the concurrent findings of the facts given by the two appellate authorities below that the commencement of the project was done within the statutory time frame and accordingly, deduction under Section 80IB(10) was allowable to assessee - Decided in favour of assessee. - Tax Case Appeal No.1901 of 2008 - - - Dated:- 8-1-2019 - Dr. Justice Vineet Kothari And Dr. Justice Anita Sumant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the approval of the project was done on 30.9.1998. 4. The Tribunal in paragraph 6 of its order, has found that the assessee had only incurred expenditure like making advances for the purchase of land, levelling of land, plan related expenditure, etc., prior to 01.10.1998, and therefore, no construction was possible prior to approval of the said plan by the competent public authority, namely CMDA, which was accorded only on 30th September 1998. Paragraph 6 of the Tribunal order is quoted below for ready reference. From the facts and material on record it appears that the assessee did not commence any construction activity before 1.10.98. It had only incurred expenditure like making advance for purchase of land, levelling of land, pl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sanction by the public authority, which was in fact given to the assessee only on 30th September 1998 and therefore, the project in question cannot be said to have been commenced prior to the cut off date of 01.10.1998. The expenditure incurred by the assessee prior to the said cut off date, namely making advance for purchase of land, levelling of land and construction of compound wall and gate to protect the land in question from encroachments etc. cannot be said to be the commencement of the project itself, which in fact has, as per the due sanction of the public authority, commenced only after the cut off date and therefore, the assessee has satisfied the conditions for the grant of deduction under Section 80IB(10) of the Act and the Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ricity lines etc . Further there was no dispute regarding the date of commencement of construction with respect to the projects, namely, Golf Link-II and East End Loni. The Tribunal has found that both these projects commenced after 1st October, 1998. With regard to the other two projects, namely, Golf Link-I and Avantika Akruti, the Tribunal held that the date of commencement of construction had to be reckoned from the date when the construction of the building plan of each project was approved by the concerned authority. On examination of the details of the chronological events furnished by the assessee, it was held by the Tribunal that the building plans of each house submitted by the assessee were not sanctioned as such by the competent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... incurred by the assessee prior to the cut off date of 01.10.1998 is not in the nature of development and commencement of the housing project itself and that the expenditure incurred in levelling of the land and construction of the compound wall was to protect the land in question so that the project could be commenced and completed once it is approved by the concerned public authority. The approval in question was admittedly given on 30th September 1998 and therefore, the commencement of the project could only take place thereafter. There is no dispute that the project in question was completed before outer and cut off date, namely 31st March 2008. Therefore, the concurrent findings of the facts given by the two appellate authorities below ..... X X X X Extracts X X X X X X X X Extracts X X X X
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