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of <h1>Appeal dismissed for failure to meet conditions under Income Tax Act section 80IB(10).</h1> <h3>Sky Builders & Developers Versus Income-tax Officer, Ward-1(1), Bhopal</h3> The Tribunal dismissed the appeal as the assessee did not meet the conditions specified under section 80IB(10) of the Income Tax Act. The absence of the ... Disallowance of deduction u/s 80IB - Development and Construction of the Housing Project-Date of completion of project after 31.03.2008 - Held that:- In present case, the housing project was approved by the local authority on 24.11.2003 (i.e. Before 1.4.2004), consequently, the assessee was to complete the construction on or before 31.3.2008. It is clearly provided that the date of issue of completion certificate, by the local authority, shall be the date of completion of the project. However, due to non-issuance of certificate, assessee was not able to produce the same . Moreover, Revenue contended that assessee sold the plots to the respective customers by registering a sale deed and thereafter the assessee constructed the building on agreed price, therefore, the assessee acted as building contractor and not as a developer. Hence, all the four conditions laid down in the clauses (a), (b), (c) and (d) of sub-sec. (10) of 80IB were not fulfilled. Decided against the Assessee. Issues:1. Disallowance of deduction under section 80IB(10) of the Income Tax Act.2. Completion of housing project before the specified date.3. Issuance of completion certificate by municipal authorities.Analysis:1. The appeal was against the disallowance of deduction under section 80IB(10) of the Income Tax Act. The assessee claimed the deduction, but the Assessing Officer disallowed it as the assessee sold plots of land to customers and acted as a contractor, not a developer. The CIT(A) affirmed this decision. The main argument was whether the assessee was involved in the development and construction of the housing project as required by the Act.2. The completion of the housing project before the specified date was crucial for claiming the deduction. The project was to be completed before 31.3.2008, and no completion certificate had been issued to the assessee by that date. The completion certificate is essential as per section 80IB(10) to determine the eligibility for the deduction. The absence of the certificate indicated that the assessee did not meet the conditions for claiming the deduction.3. The issuance of the completion certificate by municipal authorities was a key factor in this case. The completion certificate signifies the completion of the housing project, as per the provisions of section 80IB(10). The absence of the certificate meant that the assessee failed to fulfill a crucial requirement for claiming the deduction. The delay in obtaining the certificate did not alter the statutory requirement of having the certificate issued to be eligible for the deduction.In conclusion, the Tribunal dismissed the appeal as the assessee did not meet the conditions specified under section 80IB(10) of the Income Tax Act. The absence of the completion certificate by the specified date was a significant factor in denying the deduction. The judgment emphasized the importance of complying with statutory provisions for claiming tax benefits and highlighted the necessity of fulfilling all conditions for deductions under the Act.
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