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TMI Blog2019 (4) TMI 417X X X X Extracts X X X X X X X X Extracts X X X X ..... inst the same on a later date, the assessee paid compounding fees and even those floors were approved and completion certificate of the building-B was issued in 2012. The assessee is not entitled to claim any benefit of deduction u/s 80IB(10) in respect of said additional seven floors in building-B as the same were constructed without any approval. For the balance project, which was constructed as per approved building plan and within stipulated time provided under section 80IB(10) the claim of assessee cannot be denied. CIT(A) has categorically noted the fact that the assessee had applied for completion certificate vide its application dated 25.03.2011, which was submitted in the office of PMC on 30.03.2011 i.e. well within stipulated d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s filed by Revenue are against consolidated order of CIT(A), Pune-10, Pune, dated 02.09.2016 relating to assessment years 2007-08, 2008-09 and 2010-11 against respective orders passed under section 143(3) r.w.s. 147 / 143(3) of the Income-tax Act, 1961 (in short the Act ). 2. This bunch of appeals filed by Revenue relating to the same assessee on similar issue were heard together and are being disposed of by this consolidated order for the sake of convenience. However, in order to adjudicate the issue, reference is being made to the facts and issues in ITA No.2898/PUN/2016, relating to assessment year 2007-08. 3. The Revenue in ITA No.2898/PUN/2016, relating to assessment year 2007-08 has raised the following grounds of appeal:- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d deduction. First commencement certificate was received by assessee on 11.07.2005 and the project had to be completed as per section before 31.03.2011. The assessee claims to have completed the project before the said date and also claims to have filed an application for completion certificate before the PMC. Each of the flat built in the said project was with built up area of less than 1500 sq.ft. The Assessing Officer noted that as per revised return of income filed by assessee, it had claimed deduction under section 80IB(10) of the Act at ₹ 1,01,48,527/- as against gross total income of ₹ 1,07,05,781/-. The Assessing Officer during the course of assessment proceedings made certain enquiries through the Inspector as wel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... note by the CIT(A) was that after completion date, the assessee had incurred certain expenditure on the said project, which proved that project was not complete. The CIT(A) noted that expenses related to building-B under the heads viz. labour charges, material purchased, etc. The CIT(A) however, took note of the copy of application for occupancy certificate filed during appellate proceedings, which was submitted before the Assistant Engineer, PMC, wherein it was clearly mentioned that application dated 25.03.2011 was submitted in the said office on 30.03.2011 i.e. well within stipulated date. The scanned copy of letter is reproduced at pages 27 and 28 of appellate order. The CIT(A) then observes that the assessee had submitted its applicat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld that denial should be confined to profits being earned on the sale of additional seven floors constructed in building-B of approved project. Accordingly, the Assessing Officer was directed to exclude profits on prorata basis on seven additional floors in building-B and allow the claim of deduction on remaining profits. 7. The Revenue is in appeal against the order of CIT(A) in this regard. 8. From the perusal of above said facts and circumstances, it is apparent that where the assessee had commenced construction of project on 11.07.2005 and had completed the project by 31.03.2011, against which application for issue of completion certificate was also filed before the PMC, merely because the completion certificate was not given to a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... application dated 25.03.2011, which was submitted in the office of PMC on 30.03.2011 i.e. well within stipulated date. Though the Assessing Officer had pointed out that the said application was submitted on 01.04.2011, but necessary verification exercise was carried out by the CIT(A) and information was received from the Assistant Engineer, PMC, Pune and the copy of said application for occupancy certificate is scanned and placed at pages 27 and 28 of the appellate order. Hence, it is clearly proved that the application was filed within time in respect of 11 floors of building-A and 4 floors of building-B. Once the same have been completed within stipulated time, merely because the completion certificate has not been received, cannot result ..... X X X X Extracts X X X X X X X X Extracts X X X X
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