Tribunal upholds legality of reassessment under Income Tax Act, stresses completion certificate for deduction. Remits appeal for reconsideration.

The Tribunal upheld the legality of reassessment proceedings under Sections 143(3) and 147 of the Income Tax Act, finding them in accordance with the law. It emphasized the requirement of a completion certificate for claiming deduction under Section 80IB(10) and dismissed the appeal due to non-submission of the certificate. The Tribunal remitted matters concerning delay in filing the appeal and an ex-parte decision back to the CIT(A) for reconsideration, citing procedural deficiencies.

---

---

Issues Involved:
1. Legality of reassessment proceedings under Section 143(3) read with Section 147 of the Income Tax Act.
2. Validity of notice under Section 148 of the Income Tax Act.
3. Deduction under Section 80IB(10) of the Income Tax Act.
4. Requirement of completion certificate for claiming deduction under Section 80IB(10).
5. Delay in filing the appeal and its condonation.
6. Ex-parte decision by CIT(A) without giving an opportunity to the assessee.

Issue-wise Detailed Analysis:

1. Legality of Reassessment Proceedings:
The assessee challenged the reassessment proceedings under Section 143(3) read with Section 147, arguing that the reassessment was against the provisions of law and facts of the case. However, the Tribunal noted that the reassessment was initiated because the assessee did not file returns of income for subsequent years after claiming the deduction under Section 80IB(10). The reassessment was found to be in accordance with the law.

2. Validity of Notice under Section 148:
The assessee contended that the notice under Section 148 was issued by DCIT, Range 3(1), and subsequently, the jurisdiction was transferred to ACIT, Range-5(1), who should have issued a fresh notice under Section 148. The Tribunal dismissed this ground as not pressed by the assessee during the hearing.

3. Deduction under Section 80IB(10):
The main issue was the denial of deduction under Section 80IB(10) due to the non-submission of the completion certificate. The assessee argued that the project was completed within the specified period and that the municipal authorities did not issue the completion certificate despite the application. The Tribunal upheld the CIT(A)'s decision, emphasizing that the completion certificate is mandatory for claiming the deduction.

4. Requirement of Completion Certificate:
The Tribunal agreed with the CIT(A) that the completion certificate is a mandatory requirement under Section 80IB(10). The assessee failed to provide sufficient evidence of having completed the project and did not make adequate efforts to obtain the completion certificate from the local authorities. The Tribunal cited various case laws and CBDT instructions to support this requirement.

5. Delay in Filing the Appeal (ITA No. 108/VIZ/2019):
There was a delay of 92 days in filing the appeal. The CIT(A) dismissed the appeal in limine without giving the assessee an opportunity to explain the delay. The Tribunal found this to be against the principles of natural justice and remitted the matter back to the CIT(A) to examine the reasons for the delay and decide the appeal on merits.

6. Ex-parte Decision by CIT(A) (ITA No. 109/VIZ/2019):
The appeal was dismissed ex-parte by the CIT(A) without giving the assessee an opportunity to be heard. The Tribunal noted that there was no evidence to show that the notice for the hearing was served on the assessee. In the interest of justice, the Tribunal remitted the matter back to the CIT(A) to provide the assessee an opportunity to present its case and decide the appeal on merits.

Conclusion:
The Tribunal dismissed the appeal related to the deduction under Section 80IB(10) due to the non-submission of the completion certificate. However, it allowed the appeals related to the delay in filing and the ex-parte decision for statistical purposes, remitting them back to the CIT(A) for reconsideration.

---