Tribunal affirms CIT(A) decision on deduction u/s 80IB(10) based on Panchayat's project completion certificate.

The Tribunal upheld the CIT(A) decision, dismissing the Revenue's appeal against the disallowance of deduction u/s 80IB(10) due to the completion certificate issued by the local Panchayat being deemed sufficient for claiming the deduction. The Tribunal found that the Panchayat qualified as a local authority under section 10(20) and confirmed project completion within the required timeframe, supporting the assessee's eligibility for the deduction.

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Issues involved: Appeal against the order of CIT(Appeals)-III, Chennai regarding the disallowance of deduction u/s 80IB(10) for the assessment year 2006-07.

Summary:
1. The Revenue appealed against the CIT(A) order, challenging the deletion of deduction u/s 80IB(10) amounting to Rs. 13,26,78,901.
2. The Revenue argued that the completion certificate from CMDA was necessary for claiming the deduction, while the assessee had only produced a certificate from the local Panchayat.
3. The Tribunal noted that the certificate from the Panchayat confirmed project completion before the deadline, and the CIT(A) had rightly considered the Panchayat as a local authority u/s 10(20).
4. As the Panchayat fell within the definition of a local authority, the completion certificate from the Panchayat was deemed sufficient for claiming the deduction u/s 80IB.
5. Consequently, the Tribunal upheld the CIT(A) decision, dismissing the Revenue's appeal.

This judgment clarifies that for claiming deduction u/s 80IB(10), a completion certificate from a local authority, such as a Panchayat, can be considered valid if the authority confirms project completion within the stipulated timeframe.

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