Tribunal allows appeal, grants deduction under section 80IB(10) for 'Sanskriti' housing project

The Tribunal condoned the delay in filing the appeal due to valid reasons and admitted it for further proceedings. Regarding the claim of deduction under section 80IB(10) for the housing project 'Sanskriti', the Tribunal referred to precedents where delays in certificate issuance were not attributed to the assessee, leading to the allowance of the deduction. As a result, the Tribunal allowed the appeal, setting aside the impugned order, and remitted the case back to the Commissioner of Income Tax (Appeals) for a fresh decision based on relevant legal precedents.

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Issues:
1. Delay in filing appeal - condonation of delay.
2. Claim of deduction u/s. 80IB(10) on housing project 'Sanskriti'.

Issue 1: Delay in filing appeal - condonation of delay:
The appeal was filed 39 days beyond the limitation period. The assessee cited reasons for the delay, explaining that the absence from India during the filing period due to travel to the USA and subsequent illness upon return caused the delay. The Tribunal, after perusing the affidavit and passport copy provided by the assessee, found the delay not deliberate or willful. The Tribunal accepted the explanation and condoned the delay, admitting the appeal for further proceedings.

Issue 2: Claim of deduction u/s. 80IB(10) on housing project 'Sanskriti':
The case involved a housing project developed by the assessee, who claimed deduction u/s. 80IB(10). The dispute arose as the completion certificate from the PCMC was issued after the specified completion date of 31-03-2009. The assessee contended that the project was completed in December 2008 and applied for the completion certificate before the due date. The delay in certificate issuance was attributed to the PCMC. The Tribunal referred to a similar case before the Bombay High Court and the Tribunal itself, where delays in certificate issuance were not attributed to the assessee, leading to the allowance of the deduction. Considering these precedents, the Tribunal remitted the current appeal back to the Commissioner of Income Tax (Appeals) for fresh adjudication in line with the legal principles established in the cited cases.

In conclusion, the Tribunal allowed the appeal, setting aside the impugned order and remitting the case back to the Commissioner of Income Tax (Appeals) for a fresh decision based on relevant legal precedents.

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