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Tax appeal challenging deduction under Section 80IB(10) dismissed by court The court dismissed the tax appeal challenging the Income Tax Appellate Tribunal's order allowing deduction under Section 80IB(10) of the Income Tax Act, ...
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Tax appeal challenging deduction under Section 80IB(10) dismissed by court
The court dismissed the tax appeal challenging the Income Tax Appellate Tribunal's order allowing deduction under Section 80IB(10) of the Income Tax Act, 1961 for Assessment Year 2009-10. The court upheld the Tribunal's decision based on precedents and clarified that projects approved before 31st March 2005 did not require a completion certificate by a specific date if a commencement certificate was obtained before the mentioned date. The court found no substantial legal issue in the appeal and declined to entertain it, reaffirming the established principle regarding completion certificates for such projects.
Issues: Challenge to order of Income Tax Appellate Tribunal regarding deduction u/s. 80IB (10) of the Income Tax Act, 1961 for Assessment Year 2009-10.
Analysis: 1. The appeal challenges the Tribunal's order allowing deduction u/s. 80IB (10) of the Income Tax Act, 1961. The main contention raised by the Revenue is whether the Tribunal erred in granting the deduction without considering the completion of the project within the stipulated time. The Tribunal based its decision on a previous case and the amendment made in Section 80IB(10) of the Act, which waived the requirement of obtaining a completion certificate for projects approved before 31st March, 2005. Reference was also made to a decision of the Delhi High Court in a similar case.
2. The counsel for the Revenue acknowledged that the issue has been settled against the Revenue by previous decisions of the Bombay High Court. The court referred to cases where it was held that if a commencement certificate was obtained before 31st March 2005, there was no need for a completion certificate by a specific date. The court upheld the Tribunal's view in those cases, thereby establishing a precedent that supports the assessee's position.
3. Consequently, the court found that the proposed question did not raise any substantial legal issue and, therefore, declined to entertain it. As a result, the tax appeal was dismissed, with no order as to costs being issued. The judgment reaffirmed the principle established in previous cases, providing clarity on the requirement of completion certificates for projects approved before a certain date under Section 80IB(10) of the Income Tax Act, 1961.
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