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<h1>Tribunal grants relief under section 80IB(10) for timely completion of project.</h1> <h3>M/s. Ujjwal Construction Versus The Income Tax Officer, Ward 1 (3), Pune</h3> M/s. Ujjwal Construction Versus The Income Tax Officer, Ward 1 (3), Pune - TMI Issues Involved:1. Entitlement to claim relief under section 80IB(10) of the Income-tax Act.2. Correct interpretation of provisions of section 80IB(10).3. Validity of orders passed by the Assessing Officer (A.O.) and Commissioner of Income Tax (Appeals) [CIT(A)].4. Direction to accept the return of income claiming relief under section 80IB(10).Issue-wise Detailed Analysis:1. Entitlement to claim relief under section 80IB(10):The primary issue is whether the assessee is entitled to claim deduction under section 80IB(10) of the Income-tax Act. The assessee firm undertook a project for constructing residential premises named Ujjwal Gardens at Vadgaon Sheri, Pune, and claimed deduction on the profits arising from this project. The Assessing Officer (A.O.) disallowed the deduction due to the absence of a Completion Certificate from the Pune Municipal Corporation by the stipulated date of 31.03.2008. The CIT(A) upheld this decision, emphasizing the statutory requirement of submitting a completion certificate from the local authority for the grant of deduction.2. Correct interpretation of provisions of section 80IB(10):The CIT(A) and A.O. interpreted section 80IB(10) to require a Completion Certificate from the local authority as a mandatory condition for claiming the deduction. The assessee argued that the project was completed within the stipulated time, as evidenced by occupation and ancillary certificates from various departments, despite the lack of a formal Completion Certificate due to litigation with the Pune Municipal Corporation. The Tribunal referred to the Hon'ble Delhi High Court's decision in CIT vs. CHD Developers Ltd., which held that the requirement for a completion certificate was not applicable to projects approved before 01.04.2005. Since the assessee's project was approved before this date, the Tribunal concluded that the non-obtaining of the completion certificate should not bar the deduction claim.3. Validity of orders passed by the A.O. and CIT(A):The Tribunal found that the orders passed by the A.O. and CIT(A) were not in accordance with the law, as they failed to consider the completion of the project based on the evidence provided by the assessee. The Tribunal noted that the project was completed and occupied by the stipulated date, and individual completion certificates had been issued to some flat owners. The Tribunal held that the denial of the deduction solely based on the absence of a completion certificate from the Pune Municipal Corporation was not justified.4. Direction to accept the return of income claiming relief under section 80IB(10):The Tribunal directed the A.O. to allow the assessee's claim for deduction under section 80IB(10), affirming that the project was completed within the stipulated time and that the requirement for a completion certificate was not applicable to the assessee's case. Consequently, the Tribunal allowed the appeal of the assessee, setting aside the orders of the A.O. and CIT(A).Conclusion:The Tribunal concluded that the assessee was entitled to claim the deduction under section 80IB(10) of the Income-tax Act, as the project was completed within the stipulated time and the requirement for a completion certificate was not applicable. The orders of the A.O. and CIT(A) were set aside, and the A.O. was directed to allow the deduction claimed by the assessee. The appeal of the assessee was allowed.