Section 80IB(10) completion certificate rule governed deduction for an older housing project, while the one-acre objection failed.

For housing projects approved before 1 April 2004, deduction under section 80IB(10) depends on completion by 31 March 2008, and completion is determined by the date the local authority issues the completion certificate. In the stated matter, the certificate was issued on 23 October 2009, so the assessee's completion claim was not accepted. The Tribunal also treated the one-acre plot objection as already resolved in the assessee's favour and found no fresh basis to disturb that finding. The result was that the deduction claim failed, while the Revenue's challenge on plot area also failed.

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Issues: (i) Whether the assessee was entitled to deduction under section 80IB(10) of the Income-tax Act, 1961 where the housing project was approved before 1 April 2004 but the completion certificate was issued after 31 March 2008; (ii) Whether the Revenue could succeed on its objection that the plot area was less than one acre.

Issue (i): Whether the assessee was entitled to deduction under section 80IB(10) of the Income-tax Act, 1961 where the housing project was approved before 1 April 2004 but the completion certificate was issued after 31 March 2008.

Analysis: The project fell within the pre-1 April 2004 approval category, for which completion before 31 March 2008 was a statutory condition. The Explanation to section 80IB(10) treats the date of completion as the date on which the completion certificate is issued by the local authority. The certificate in the record was issued on 23 October 2009, and the materials relied on by the assessee were found insufficient to show that the project had been completed within the prescribed time. The earlier Tribunal decision in the assessee's own case for assessment year 2006-07 was followed, and the cited High Court decisions were found distinguishable on facts.

Conclusion: The deduction claim under section 80IB(10) was rejected and the issue was decided against the assessee.

Issue (ii): Whether the Revenue could succeed on its objection that the plot area was less than one acre.

Analysis: The issue was treated as already covered by the Tribunal's earlier view in favour of the assessee. No fresh basis was found to disturb the finding of the CIT(A) on this aspect.

Conclusion: The Revenue's objection on the one-acre plot requirement was rejected and the issue was decided against the Revenue.

Final Conclusion: The assessee's challenge to denial of deduction failed, while the Revenue's challenge on the plot-area requirement also failed, leaving the composite relief adverse to both sides.

Ratio Decidendi: For housing projects approved before 1 April 2004, entitlement to deduction under section 80IB(10) depends on completion by 31 March 2008, and completion is determined by the date of issuance of the completion certificate by the local authority.

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