Tribunal orders deduction under section 80IB(10) for assessee, setting precedent for future cases.

The Tribunal allowed the appeal, directing the Assessing Officer to grant the deduction under section 80IB(10) to the assessee. The Tribunal held that the assessee had met the statutory requirements, and any delays in completion certificate issuance or combining of adjacent flats post-sale did not affect the eligibility for the deduction. The decision was based on the Tribunal's previous rulings in favor of the assessee for the preceding assessment years, establishing a precedent for allowing the deduction in this case.

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Issues Involved:

1. Denial of deduction under section 80IB(10) of the Income Tax Act, 1961.
2. Completion certificate issuance date.
3. Combining of adjacent flats and its impact on built-up area.

Issue-wise Detailed Analysis:

1. Denial of Deduction under Section 80IB(10):

The primary issue in this appeal is the denial of deduction under section 80IB(10) amounting to Rs. 30,10,876/- claimed by the assessee for the housing project "Kasturkunj" in Pune. The Assessing Officer disallowed this deduction, a decision upheld by the CIT(A), based on similar disallowances in previous assessment years. The Tribunal, however, had allowed the deduction for the assessee in the preceding assessment years 2006-07 and 2007-08, setting a precedent for the current appeal.

2. Completion Certificate Issuance Date:

The dispute centers around the completion certificate for building 'E' issued by the Pune Municipal Corporation on 5-5-2008, while the statutory deadline was 31-3-2008. The Tribunal found that the assessee applied for the completion certificate on 12-3-2008, asserting that the construction was complete before the deadline. The Tribunal noted that the local authority did not raise any objections and the delay in issuing the certificate was not attributable to the assessee. Citing similar cases, the Tribunal concluded that the assessee had complied with the completion requirement of section 80-IB(10)(a)(i) and that the delay in the issuance of the certificate should not deny the deduction.

3. Combining of Adjacent Flats and Its Impact on Built-Up Area:

The Assessing Officer also denied the deduction on the grounds that certain adjacent flats were sold to single individuals or families and combined, resulting in a built-up area exceeding 1500 sq.ft., which violates clause (c) of section 80-IB(10). The assessee contended that the flats were sanctioned and sold as independent units, and any combining was done by the purchasers post-possession. The CIT(A) found no evidence that the assessee combined the flats before selling them. The Tribunal upheld this view, noting that the flats were sanctioned and sold as separate units, and any post-sale combination by purchasers does not affect the compliance with section 80-IB(10)(c).

Conclusion:

The Tribunal, following its earlier decisions in the assessee's own case for the preceding assessment years, allowed the appeal. It directed the Assessing Officer to allow the deduction under section 80IB(10), as the assessee had complied with the statutory requirements, and any delays or combinations post-possession were not attributable to the assessee. The appeal filed by the assessee was thus allowed.

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