Tribunal upholds deduction under Income Tax Act; Delay not attributed to assessee

The Tribunal upheld the Commissioner of Income Tax (Appeals)-9, Pune's decision to allow a deduction of Rs.3,05,53,176/- under section 80IB(10) of the Income Tax Act, 1961. The Tribunal found that the delay in issuing the completion certificate was not attributable to the assessee, as the application was made before the due date and no defects were identified by the Pune Municipal Corporation. The Tribunal applied the precedent set in a similar case and dismissed the Revenue's appeal, affirming the allowance of the deduction. The appeal by the Revenue was dismissed, and the CIT(A)'s decision was upheld on 08th June 2022.

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Issues Involved:
1. Deletion of disallowance of Rs.3,05,53,176/- under section 80IB(10) of the Income Tax Act, 1961.
2. Applicability of the decision in CIT vs. Hindustan Samuh Awas Limited (2015) 377 ITR 150 (Bom.) to the present case.
3. Attribution of delay in issuing the completion certificate by the Pune Municipal Corporation (PMC) to the assessee.

Issue-wise Detailed Analysis:

1. Deletion of Disallowance under Section 80IB(10):
The Revenue challenged the order of the Commissioner of Income Tax (Appeals)-9, Pune [CIT(A)] which allowed the deduction of Rs.3,05,53,176/- under section 80IB(10) of the Income Tax Act, 1961. The Assessing Officer (AO) had disallowed the deduction on the grounds that the final completion certificate for the housing project was granted by the PMC on 21.07.2012, which was beyond the prescribed date of 31.03.2012. The CIT(A) allowed the deduction based on the Tribunal's decision in the assessee's own case for the previous assessment year, where it was held that the application for the completion certificate before the due date was sufficient compliance.

2. Applicability of the Decision in CIT vs. Hindustan Samuh Awas Limited:
The Revenue argued that the CIT(A) erred in relying on the decision of the Bombay High Court in CIT vs. Hindustan Samuh Awas Limited, as the facts of that case were different. In Hindustan Samuh Awas Limited, the delay in issuing the completion certificate was not attributed to the assessee. However, in the present case, the Revenue contended that the delay was attributable to the assessee because the amenity space was handed over to the PMC only on 22.05.2012.

3. Attribution of Delay in Issuing the Completion Certificate:
The Revenue argued that the delay in issuing the completion certificate was due to the assessee's late handover of the amenity space to the PMC. The assessee countered this by stating that the application for the completion certificate was made on 27.03.2012, accompanied by the Architect's certificate, and no defects were pointed out by the PMC. The Tribunal noted that the Bombay High Court in Hindustan Samuh Awas Limited had held that if the application for the completion certificate is made before the due date and the delay in issuance is not attributable to the assessee, it should be deemed that the project was completed on the date of the application.

Tribunal's Conclusion:
The Tribunal found that the application for the completion certificate was moved by the assessee on 27.03.2012, and there was no evidence that the PMC had pointed out any defects in the application. Therefore, the Tribunal concluded that the ratio of the judgment in Hindustan Samuh Awas Limited was applicable to the present case. The Tribunal upheld the CIT(A)'s order allowing the deduction under section 80IB(10) and dismissed the Revenue's appeal, stating that the grounds raised by the Revenue were devoid of any merits.

Final Order:
The appeal filed by the Revenue was dismissed, and the order of the CIT(A) was upheld. The decision was pronounced on 08th June 2022.

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