2013 (10) TMI 980

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....had filed its return of income on 29.11.2006 declaring total income of Rs.41,79,245/-. The return was processed under section 143(1) of the Income Tax Act, 1961 and subsequently selected for scrutiny. Statutory notices were issued. The assessment was completed on total income of Rs.4,59,24,085/-. The Assessing Officer disallowed deduction under section 80IB of the Act amounting to Rs.54,65,550/- among other disallowances. 3. Aggrieved, assessee preferred appeal before the CIT(A). The facts of the case are that the Assessing Officer rejected the grant of deduction under section 80IB(10) as the assessee should have enclosed a completion certificate 'from the competent authority while putting-up his claim'. The Assessing Officer opined that....

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....rity. The learned Counsel further contended that since the issue of occupancy certificate was getting delayed, the licensed builder / developer i.e., the assessee, had itself approached the local authority vide letter dated 19.3.2009, informing that the construction had been completed and possession to all flat owners had been given and that property tax assessments had also been completed in may cases and therefore, a completion certificate be given. Further, the learned Counsel contended that after considering the completion certificate issued by the structural engineer and the registered architect and the representation of the license builder, the zonal commissioner, GHMC, West Zone, issued a completion/occupancy certificate on 30.11.200....

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.... and from the above, it is clear that for allowance of deduction under section 80IB(10), a "completion certificate" is to be mandatorily obtained from the local authority and that the date of issuance of such completion certificate is to be taken as the date of completion of construction of the housing project. Even para Nos. 25.1 and 25.2 of the Departmental Circular No. 5 of 2005, dt. 15.7.2005, emphasize this issue as under : ". . . ..for this purpose the date of approval shall be the date on which the building plan is first approved by the local authority and the date of completion of the housing project, shall be the date on which the completion certificate is issued by such authority." 6. The learned CIT(A) concluded that in t....

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....ch 'B' Bench vide ITA.No.295/PN/2012 dated 17.05.2013 and the decision of ITAT 'G' Bench, New Delhi vide ITA.No.2743 to 2745/Del/2010 dated 01.08.2012. 9. We have heard both the parties. We find that the Hyderabad Urban Development Authority has given sanction only on 26.06.2004. The decision in the case of Jain Housing and Construction is squarely against the assessee. The relevant portion of the decision Hon'ble Madras High Court in the case of Jain Housing & Constructions Ltd., (supra) are extracted below : "9. As is evident from the substitution of Section 801B(10)(1) of the Act, prior to the amendment, there was no such requirement as regards furnishing of completion certificate and the deduction provision pointed out to the gran....