TaxTMI 
TaxTMI 
2014 (9) TMI 1012
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....in assessment year 2005-06 and ground nos. 1 to 4 in assessment years 2007-08 relate to the claim of deduction u/s 80IB(10). The facts relating to these grounds are that there had been search and seizure in the case of the assessee u/s 132 at the residential /business premises in the case of Shri Rajendra Bhandari and Shri Jayant Bhandari. The assessee filed return on 31.10.2005 declaring nil income after claiming the deduction u/s 80IB(10) in each of the assessment year. In the assessment year 2005-06, the returned income was accepted u/s 143(1). Subsequently, the proceeding u/s 147 were initiated and the assessment u/s 147 read with Section 143(3) was completed disallowing the claim of the deduction u/s 80IB(10). Similarly, the claim of the deduction u/s 80IB(10) while framing the assessment u/s 143(3) was disallowed in assessment year 2007-08. The assessee went in appeal before the CIT(A). The ld. CIT(A) confirmed the disallowance. The ld. Authorized Representative before us contended that the assessee is engaged in the business of developer and construction. The ld. Authorized Representative submitted before us that the Assessing Officer disallowed the claim on two counts, one,....
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.... ld. CIT(A), especially para 13 and vehemently contended that as per Explanation to Section 80IB(10), sub clause (2), it is apparent 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 Authority. This is undisputed fact that the Municipal Corporation has issued the completion certificate on 29.5.2010. He contended that the decision of Hon'ble Delhi High Court in the case of CHD Developers Ltd. (supra), is not applicable. Reliance was also placed on the following decisions of Indore Bench of this Tribunal :- (i) Agrawal Builders v. ACIT [I.T. Appeal No.337/Ind/2010]. (ii) ACIT v. Asnani Builders [I.T. Appeal Nos. 177 & 168/Ind/2013]. 6. We have heard the rival submissions and carefully considered the same. We noted that in this case, the Assessing Officer has disallowed the claim of the assessee u/s 80IB(10) on two grounds, first, that the assessee is not the owner and the permission of the project is not in the name of the assessee, second, that the project has not been completed within the stipulated time. The assessee went in appe....
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....he provision which read as under :- "80-IB. (1) Where the gross total income of an assessee includes any profits and gains derived from any business referred to in sub-sections (3) to[(11), (11A) and (11B)] (such business being hereinafter referred to as the eligible business), there shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total income of the assessee, a deduction from such profits and gains of an amount equal to such percentage and for such number of assessment years as specified in this section. [(10) The amount of 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 Marc....
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.... in which such individual is the karta, (iii) any person representing such individual, the spouse or the minor children of such individual or the Hindu undivided family in which such individual is the karta. [Explanation. - For the removal of doubts, it is hereby declared that nothing contained in this sub-section shall apply to any undertaking which executes the housing project as a works contract awarded by any person (including the Central or State Government).]" 8. We may mention that this is the assessment year 2005-06 in which the assessee has claimed the deduction u/s 80IB(10). From the perusal of the sub section, it is apparent that the assessee is entitled for the deduction, if he complied with all the conditions as has been stipulated, at the time when the assessee has commenced the development. This is an undisputed fact that in the case of the assessee, the project was approved on 24.4.2003. Therefore, as per Section 80IB(10)(a)(i) as amended w.e.f. 1.4.2005, the assessee was required to complete the construction on or before 31st day of March, 2008. Explanation (ii) of Section 80IB(10) defines the date of completion of the construction. It clearly states....