TaxTMI 
TaxTMI 
2014 (12) TMI 1184
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.... as follows. The appellant is a partnership firm engaged in the 2 business of promoters and builders. The assessee firm undertook development and building of a housing project, named, 'Runwal Daffodils' and with respect to the profits earned from such project, it claimed exemption u/s 80-IB(10) of the Act amounting to Rs. 1,20,25,699/-. 4. The project of the assessee commenced on 12.12.2003. The Assessing Officer was of the view that the project of the assessee did not comply with the conditions prescribed in clause (a) to section 80-IB(10) of the Act read with Explanation (ii) thereof. As per the Assessing Officer, the construction of the project was to be completed by 31.03.2008 and in terms of Explanation (ii) of clause (a) to section 80-IB(10) of the Act, the date on which the completion certificate is issued by the local authority is to be taken as the date of completion. In the present case, according to the Assessing Officer, assessee did not obtain the completion certificate from the local authority i.e. Pune Municipal Corporation (PMC) on or before 31.03.2008. Therefore, the Assessing Officer disallowed assessee's claim for deduction u/s 80-IB(10) of the Act amounting t....
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....onstruction is 31.03.2008 and in respect of such project, completion certificate has not been issued by the PMC on or before 31.03.2008 and therefore the lower authorities were justified in disallowing the deduction claimed by the assessee u/s 80-IB(10) of the Act. 7. We have carefully considered the rival submissions. The crux of the controversy in the present appeal relates to the provisions of sub-clause (i) of 4 clause (a) to section 80-IB(10) of the Act read with Explanation (ii) thereof. As per the Revenue, having regard to sub-clause (i) of clause (a) to section 80- IB(10) of the Act, the construction of the housing project was to be completed on or before 31.03.2008. Sub-clause (i) of clause (a) to section 80-IB(10) of the Act prescribes that where a housing project is approved on or before 01.04.2004 then the development and construction of such housing project shall be completed on or before 31.03.2008. Explanation (ii) below clause (a) of section 80-IB(10) of the Act provides that the date of completion of construction of the housing project shall be taken to be the date on which the completion certificate in respect of such housing project is issued by the local auth....
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....ertaking 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 or after the 1st day of April, 2004 but not later than the 31st day of March, 2005, within four years from the end of the financial year in which the housing project is approved by the local authority. (iii) In a case where a housing project has been approved by the local authority on or after the 1st day of April, 2005, within five years from the end of the financial year in which the housing project is approved by the local authority. Explanation- For the purposes of this clause,- (i) in a case where the approval in respect of the housing project is obtained more than once, such housing project shall be deemed to have been approved on the date on which the building plan of such housing project is first approved by the local authority; (ii) the date of completi....
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....e of the assessee before us is fully covered by the ratio of the judgement of the Hon'ble Delhi High Court in the case of CHD Developers Ltd. (supra). In this background, we therefore find no reasons to uphold the objection of the lower authorities in order to disallowance claimed u/s 80-IB(10) of the Act. 7 11. Factually speaking, assessee has consistently canvassed before the lower authorities as well as before us that the construction of the project was complete in all respects by 31.03.2008. In-fact, before the CIT(A) assessee also pointed out that it had made an application to the PMC for issuance of completion certificate before 31.03.2008. It was, thus, contended that the construction of the project was complete within the stipulated period and the same should be taken as a due compliance with the requirements of clause (a) to section 80-IB(10) of the Act. We find that the lower authorities have reproduced the submissions of the assessee in this regard in their respective orders. The Assessing Officer has reproduced the submissions of the assessee in para 4 of the assessment order. The Assessing Officer has also noted that assessee furnished the copy of electricity....