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TMI Blog2015 (3) TMI 1368X X X X Extracts X X X X X X X X Extracts X X X X ..... r dated 8.9.1999, we find that there was some construction in the project prior to the amendment proposal in the development plan put forward by the owner of the land which was rejected by the CIDCO vide order dated 18.06.1998. Therefore, the commencement of the project has to be taken into account as per the actual construction work started in respect of the project and not by taking into consideration the original sanction and amended sanction of the plan. Since the actual work of construction and development of the project has not been examined by the authorities below, therefore, in the facts and circumstances of the case, we set aside this issue to the record of AO for proper verification and examination of the fact and then decide the issue as per law. The issue of completion of project within the prescribed time limit is kept open - Decided in favour of revenue for statistical purposes. - ITA NO. 4765/Mum/2010 - - - Dated:- 25-3-2015 - SHRI VIJAY PAL RAO, JUDICIAL MEMBER AND SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER For The Revenue : Shri Vivek Batra For The Assessee : Shri K. Shivaram ORDER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10.2005 does not change the date of original commencement certificate issued on 6.9.1991. Thus the Ld. DR has submitted that the CIT(A) has applied incorrect interpretation of provisions of Act on the point of commencement. The actual date of start of work is not relevant but as per the provisions the date on which the commencement certificate was issued by the local authority is relevant and deemed as the date of commencement of housing project. He has referred the Explanation to section 80IB(10) and submitted that the revalidation of plan vide order dated 3.10.2005 is only an amendment in the plan first anctioned by the local authority in the year 1991, therefore, the commencement is also in the year 1991. 5. On the other hand, the Ld. AR has submitted that the original approval in the case was obtained from the local authority on 6.9.1991 in the name of original owner Mr. Rakesh Kumar Wadhawan. The original owner filed the appeal against the approval dated 6.9.1991 and accordingly fresh commencement certificate dated 3.10.2005 was issued. He has further submitted that the revalidation order dated 3.10.2005 supersedes the earlier commencement and, therefore, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed before the 31st day of March, 2008 by a local authority shall be hundred per cent of the profits derived in the previous year relevant to any assessment year from such housing project if,- ( a) such undertaking has commenced or commences development and construction of the housing project on or after the 1st day of October, 1998 and completes such construction,- ( i) in a case where a housing project has been approved by the local authority before the 1st day of April, 2004, on or before the 31st day of March, 2008; ( ii) in a case where a housing project has been, or, is approved by the local authority on or after the 1st day of April, 2004 but not later than the 31st day of March, 2005, within four years from the end of the financial year in which the housing project is approved by the local authority; ( iii) in a case where a housing project has been approved by the local authority on or after the 1st day of April, 2005, within five years from the end of the financial year in which the housing project is approved by the local authority. Expla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the Hindu undivided family in which such individual is the karta. Explanation.-For the removal of doubts, it is hereby declared that nothing contained in this sub-section shall apply to any undertaking which executes the housing project as a works contract awarded by any person (including the Central or State Government). --------------------------- --------------------------- 8. As per clause a of section 80IB(10), the primary condition of availing the deduction u/s 80-IB(10) is that the undertaking has commenced or commences development and construction of housing project on or after 1.10.1998. Sub-clause (i) to (iii) enumerate the different situations and stipulates the condition for completion of the project as per the respective date of approval by the local authority. Therefore, the approval of the project by the local authority is relevant only for the time span within which the project has to be completed. If a project is approved by the local authority before 01.04.2004 it has to be completed before 31.03.2008 to avail the deduction u/s 80IB(10). Similarly, if the project is approved by the l ..... X X X X Extracts X X X X X X X X Extracts X X X X
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