Tribunal denies deduction under Section 80IB(10) for incomplete project, upholds minimum plot area requirement.

The Tribunal upheld the CIT(A)'s decision, denying the assessee's deduction under Section 80IB(10) as the project was not completed by the stipulated date. The Tribunal declined to interfere with the CIT(A)'s order regarding the minimum plot area requirement of one acre, dismissing the Revenue's appeal. Both the assessee's Cross Objection and the Revenue's appeal were dismissed, affirming the CIT(A)'s decision on both issues.

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Issues Involved:
1. Eligibility for deduction under Section 80IB(10) based on the completion certificate.
2. Area of the plot of land being a minimum of one acre.

Issue-wise Detailed Analysis:

1. Eligibility for Deduction under Section 80IB(10) Based on the Completion Certificate:

The primary dispute revolves around whether the assessee is eligible for deduction under Section 80IB(10) of the Income Tax Act, considering the completion certificate's date. The assessee claimed that the project was completed before the stipulated date of 31.03.2008. However, the completion certificate was issued on 23.10.2009. The assessee argued that the essence of the requirement was met, citing previous Tribunal orders and judgments from the Gujarat and Delhi High Courts.

The Tribunal examined the facts and previous orders, noting that the completion certificate issued by the local authority is the determining factor for the project's completion date. Despite the assessee's claim of applying for the certificate before the deadline, the Tribunal found that the application dated 14.03.2008 was for map approval, not the completion certificate. Consequently, the Tribunal upheld the CIT(A)'s decision, denying the deduction under Section 80IB(10) as the project was not completed by 31.03.2008.

2. Area of the Plot of Land Being a Minimum of One Acre:

The Revenue contested the CIT(A)'s reliance on previous ITAT orders from assessment years 2005-06, 2006-07, and 2007-08, which held that the assessee met the requirement of the plot area being a minimum of one acre. The Revenue argued that the assessee undertook three plots, which did not constitute a single plot of one acre.

The Tribunal noted that the issue had been previously decided in favor of the assessee by the ITAT, and the Revenue's appeal on this matter was pending before the High Court. Given the existing Tribunal decision supporting the assessee, the Tribunal declined to interfere with the CIT(A)'s order on this aspect, thereby dismissing the Revenue's appeal.

Combined Result:

Both the Cross Objection by the assessee and the appeal by the Revenue were dismissed. The Tribunal's decision was pronounced in the open court, affirming the CIT(A)'s order regarding the denial of deduction under Section 80IB(10) and the area of the plot of land.

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