2010 (12) TMI 1196

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....entions have been heard and records perused. 4. Facts in brief are that the assessee is a firm engaged in the business of civil construction, building and developing of Housing Project. In the return of income, it has claimed deduction of Rs. 36,63,342/- u/s 80IB(10). The AO observed that the assessee has not complied with pre-requisite conditions for allowing claim u/s 80IB in so far as its D.K. Honey Homes Project was not completed prior to 31.3.2008. The AO also called for information u/s 133(6) from local authorities. It was informed by Local Authorities that completion certificate was not provided to the assessee. The said letter of Local Authority was made part of assessment order by the Assessing Officer and marked as Annexure 'A'. ....

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....ate of local authority with specific mention of completion of project before 31.3.2008, which is a basic condition for allowing claim u/s 80IB(10). The assessee again produced the certificate, which was again duly verified from the local authorities to the effect that a letter dated 21.3.2008 by the assessee intimating to local authority for completion of its project at Khasra Nos. 74, 75, 78, 79, 91, 94, 102, 104, 419, 420, 421 was received by the Municipal Corporation on 29.3.2008. On the basis of this certification, the ld. Authorized Representative further contended that the assessee has done whatever he has expected to do and that letter regarding completion of project was duly entered in Municipal record on 29.3.2008, on the basis of ....

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.... furnish the certificate of completion of this project M/s. D.K. Honey Homes. The AO also directly called information from local authorities by issuing summons u/s 133(6) and a letter was issued by the competent authority dated 11th November, 2008, confirming that no completion certificate has been issued by this office. Accordingly, the assessee's claim for deduction u/s 80-IB was declined. Section 80IB clearly defines the date of completion as "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 Authorities", it means Local Authorities is competent to certify the date of completion of Housing Project. The date ....