TaxTMI 
TaxTMI 
2014 (8) TMI 789
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.....40 lakhs. 2. Briefly stated, assessee company is in the business of real estate development and has filed return of income on 30.09.2008 admitting Nil income after claiming deduction of Rs. 1,15,39,999 under section 80IB of the Act. The assessment under section 143(3) was completed by disallowing the claim under 80IB on the reason that assessee did not furnish completion certificate. 2.1. It was the submission of the assessee that assessee was following percentage completion method and income during the year was estimated. In order to satisfy the conditions, assessee submitted that the project was approved by the local authority before October, 2003 and the project was on more than ac.1.00 plot. As per the provisions, the project sho....
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....ara 4.3 discussed the issue elaborately and has come to an opinion that in the absence of completion certificate, assessee is not entitled for deduction. He also noted down the discrepancy between the sanctioned plan and the sale deeds and no explanation for the deviation from the approved plan. Since the mandatory certificate has not been submitted, he concurred with the A.O. and dismissed the appeal. 4. Aggrieved on the action taken by the authorities, it was the submission that assessee has in fact pursuing the matter of completion certificate but the GHMC authorities are not acting/acceding to the request. Ld. Counsel also placed on the record the directions of the Hon'ble High Court in WPMP. No.44525 of 2013 dated 26th December, 201....
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....s considered in the decision of M/s. Kura Homes P. Ltd. assessee is not required to furnish completion certificate. The decision of the Coordinate Bench in the above referred case is as under : "9. On a careful reading of the aforesaid judgment of the Hon'ble Delhi High Court and more specif ically the observation made in Para 10 of the judgment, the proposition of law which can be culled out is, for a housing project which is approved by the competent authority prior to 01/04/2005 there is no requirement under the unamended provision u/s 80IB(10) to furnish a completion certif icate from the local authority because law requiring furnishing of such completion certif icate was brought into the statute only with effect from 01/04/2005, hen....
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....e has fulf illed all other preconditions of the said provision then the assessee will be entitled to claim deduction u/s 80IB(10) of the Act. It is patent and obvious from the assessment order that the AO has disallowed deduction u/s 80IB(10) only for the reason that assessee has not furnished completion certif icate from the local authority. Therefore, it is to be presumed that all other conditions of section 80IB(10) are complied by the assessee except the fact of completion of housing project. In these circumstances, if the assessee will be able to prove completion of housing project within stipulated time by providing any other evidence, then claim of deduction u/s 80IB(10) cannot be denied to the assessee. In view of the aforesaid, we ....
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....et off to the income assessed in this year, as can be seen from the statements before the A.O. and Ld. CIT(A). Therefore, prima facie a doubt arises whether the project was completed before 31.03.2008 or went on in later years also. As seen from the proceedings before the Hon'ble High Court assessee was pleading for completion certificate which in spite of the direction has not yet been issued by the GHMC authorities. Whether the project is within the approved plans or not, whether there are any deviations and the reasons why GHMC has not issued completion certificate also require verification. Therefore, even though on legal principles insistence of completion certificate is not required for the project which are approved before 01.04.2005....