TaxTMI 
TaxTMI 
2011 (8) TMI 722
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....ding that the assessee is not involved in the development and construction of the housing project and further erred in holding that the assessee did not complete the housing project up to 31.3.2008. 2. During hearing of the appeal, we have heard Shri Arun Jain, Ld. Counsel for assessee and Shri Arun Dewan, ld. Sr. DR. The crux of arguments on behalf of the assessee is that the assessee duly completed the project within prescribed limit and the assessee is duly involved in development and construction of the housing project which was completed before 31.3.2008. On a question from the Bench, whether the completion certificate has been issued to the assessee by the municipal authorities, it was fairly agreed by the Ld. Counsel for assessee ....
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....deduction in the case of an undertaking developing and building housing projects approved before the 31st day of March, [2008] by a local authority shall be hundred per cent of the profits derived in the previous year relevant to any assessment year from such housing project if,- (a) such undertaking has commenced or commences development and construction of the housing project on or after the 1st day of October, 1998 and completes such construction,- (i) in a case where a housing project has been approved by the local authority before the 1st day of April, 2004, on or before the 31st day of March, 2008; (ii) in a case where a housing project has been, or, is approved by the local authority on o....
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....these cities and one thousand and five hundred square feet at any other place; and (d) the built-up area of the shops and other commercial establishments included in the housing project does not exceed five per cent of the aggregate built-up area of the housing project or two thousand square feet, whichever is less.] The following clauses (e) and (f) shall be inserted after clause (d) of sub-section (10) of section 80-IB by the Finance (No. 2) Act, 2009, w.e.f. 1-4-2010 : (e) not more than one residential unit in the housing project is allotted to any person not being an individual; and (f) in a case where a residential unit in the housing project is....
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....se, the completion certificate was issued to the assessee clearly mentioning the date of the project but in the present appeal, even till date, no such certificate was issued and secondly, the assessee sold the plots to the respective customers by registering a sale deed and thereafter the assessee constructed the building on agreed price, therefore, the assessee acted as building contractor and not as a developer, consequently, this decision may not help the assessee. Sometimes, the process of issuance of certificate may take time, therefore, for claiming eligibility of deduction as per Explanation (2) of sec. 80IB(10)(a) of the Act, the crucial aspect is the date mentioned in the letter certifying completion of project. For claiming deduc....
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....ty, shall be hundred per cent of the profits derived in any previous year relevant to any assessment year from such housing project if - (a) Such undertaking has commenced or commences development and construction of the housing project on or after the 1st day of October, 1998; (b) The project is on the size of a plot of land which has a minimum area of one acre, and (c) The residential unit has a maximum built-up area of one thousand square feet where such residential unit is situated within the cities of Delhi or Mumbai or within twenty-five kilometres from the municipal limits of these cities and one thousand and five hundred square feet at any other place." 5. Substitution was further made....