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Appellate Tribunal allows deduction under section 80IB(10) for housing project pre-amendment The Appellate Tribunal, ITAT Ahmedabad, allowed the appeal of the assessee against the disallowance of deduction u/s. 80IB(10) due to the absence of a ...
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Appellate Tribunal allows deduction under section 80IB(10) for housing project pre-amendment
The Appellate Tribunal, ITAT Ahmedabad, allowed the appeal of the assessee against the disallowance of deduction u/s. 80IB(10) due to the absence of a project completion certificate. The Tribunal held that the completion certificate requirement did not apply to projects approved before the relevant amendment, citing a decision by the Hon'ble Delhi High Court. As the housing project in question was approved prior to the amendment, the Tribunal set aside the Commissioner's order and permitted the deduction u/s. 80IB(10) for the assessee. The disallowance was deleted, and the appeal was allowed on August 14, 2014, in Ahmedabad.
Issues: Appeal against disallowance of deduction u/s. 80IB(10) due to lack of project completion certificate.
Analysis: The Appellate Tribunal, ITAT Ahmedabad, heard an appeal by the assessee against the Commissioner of Income Tax (Appeals)'s order. The sole issue was the disallowance of deduction u/s. 80IB(10) by the Assessing Officer, citing the absence of a project completion certificate from the local authority. The Commissioner upheld the disallowance solely based on the lack of the completion certificate, despite accepting other contentions of the assessee related to the housing project development. The Authorized Representative argued that the requirement for a completion certificate came into effect from April 1, 2005, applicable to projects approved after that date. Citing a decision by the Hon'ble Delhi High Court, it was contended that the stringent condition of obtaining a completion certificate within four years of approval did not apply to projects approved before the amendment. The housing project in question was approved on March 10, 2004, making the completion certificate condition inapplicable as per the Delhi High Court decision.
The Tribunal found that the housing project had indeed been approved before the amendment requiring a completion certificate within four years. Relying on the decision of the Hon'ble Delhi High Court, the Tribunal set aside the Commissioner's order and allowed the deduction u/s. 80IB(10) for the assessee. The Tribunal held that the completion certificate condition was not applicable in this case, following the precedent set by the Delhi High Court. Consequently, the appeal of the assessee was allowed, and the disallowance of deduction u/s. 80IB(10) was deleted. The order was pronounced in court on August 14, 2014, in Ahmedabad.
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