2013 (2) TMI 239

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....tion u/s. 80IB(10) of the Income Tax Act, 1961 for a project approved prior to 1/10/1998, ignoring explanation (i) to Section 80IB of the Income Tax Act, 1961?     ii) Whether on the facts and in the circumstances of the case and in law the Tribunal is justified in allowing the claim of deduction u/s.80IB (10) of the Income Tax Act for a project approved on 28/8/1997 when provisions of Section 80IB(10) were not existing in the statute? 2. The respondent-assessee initiated a project for construction of residential premises called "Gold Coast" in the year 1995-96 by purchase of land. The construction project was first approved on 20/8/1997. Subsequently, the plans for the project were revised and approval for the same was....

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....ears benefit of Section 80IB(10) of the said Act was denied. 5. On first appeal, the CIT(A) by two separate orders one for assessment year 2004-05 and 2005-06 dated 26/2/2008 and the other for assessment year 2006-07 dated 30/5/2008 allowed the respondent assessee's three appeals. The CIT (A) held that though the plan was originally approved in 1997.The revised plan was approved only in 2002 and confirmation regarding non agriculture use of land was also received in 2002. In such circumstances, it must be concluded that the housing project was commenced only from the financial year 2002-03 on commencement certificate being issued and not before 1/10/1998. Similarly, the CIT(A) held that as the examination by DVO, revealed that the size o....

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.... of construction commenced only on 22/1/2002 when the commencement certificate was issued. Therefore, the Tribunal while upholding the order of the CIT (A) held that for all the three assessment years the approval of the authorities and commencement certificate are post 1/10/1998. Similarly, the Tribunal upheld the finding of the CIT(A) in holding that DVO has certified that combined area of the flats was less than 1500 sq. ft. Consequently, the Tribunal while upholding the order of the CIT(A) held that Section 80 IB(10) of the Act are complied with and the respondent-assessee is entitled to the benefit of Section 80IB of the Act for assessment years 2004-05, 2005-06 and 2006-07. 8. We note that CIT(A) as well as the Tribunal have based ....