AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2016 (4) TMI 205
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....of the housing project were sanctioned by West Bengal Housing Infrastructure Development Corporation Ltd., (WBHIDCO). The Assessee claimed that its income from construction of a housing project at New Town, Rajarhat,Kolkata was eligible for 100% deduction u/s.80IB(10) of the Income Tax Act, 1961 (Act). The relevant provisions of Sec.80-IB(10) of the Act applicable for AY 2006-07 read as follows: "(10) The amount of deduction in the case of an undertaking developing and building housing projects approved 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 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, within four years from the end of the financial year in which the housing pro....
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....rity" means- (i) Panchayat as referred to in cl. (d) of Art. 243 of the Constitution; or (ii) Municipality as referred to in cl. (e) of Art. 243P of the Constitution; or (iii) Municipal Committee and District Board, legally entitled to, or entrusted by the Government with, the control or management of a Municipal or local fund; or (iv) Government Board as defined in s. 3 of the Cantonments Act, 1924 (2 of 1924).'; 6. According to the AO, since the housing project in question was approved by WBHIDCO and since income of WBHIDCO is not covered by Explanation below section 10(20) of the Act and the housing project of the Assessee cannot be said to be approved by local authority and therefore the deduction u/s.80-IB(10) of the Act is not admissible. 7. The submission of the Assessee before the AO was that the assessee has fulfilled all the conditions to claim deduction u/s.80-IB(10) of the Act, viz.,: 1. The housing project had commenced during April, 2004. 2. The sanction date of approval of the housing project is 16.7.2004 issued by WBHIDCO (the developing local housing authority for sanction of the project at New Town) 3. The size of the plot of land is 5 acres 4. The ....
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....as as follows: 'In exercise of the power conferred by. sub-section (4) of section 11 of the West Bengal Town and Country (Planning and Development) Act, 1979 (West Bengal XIII of 1979), the Governor is pleased to appoint the West Bengal Housing Infrastructure Development Corporation Ltd. (HIDCO) as the Planning Authority in respect of the Planning Area declared as such under Notification No 1423/IIG/NTP/IM-I/98 dated 27th August, 1999 from the date of this order.' The notification further reads as under: 'In exercise of the power conferred by sub-section (3) of section 1 of the West Bengal Town and Country (Planning and Development) Act, 1979 (West Bengal Act XIII of 1979) the Governor is pleased hereby to appoint the 1st day of September, 1999 as the date on which the said Act shall come in force in that ........described in the schedule below: Schedule Name of the district Name of Police Station J.L. Nos North 24 Parganas Rajarhat 11,12,13,14,15,16,19, 20,21,22,23,24,25,33, 34,35,36 & 55 South 24 Parganas Bhangar 2,3,8,9 and 10 10. The Assessee pointed out that from the above, it would be clear that WBHIDCO had been notified as the local housing authorit....
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....e its object. While interpreting a taxing statute, one has simply to look to what is clearly stated therein. It was pointed out that the Legislature has introduced section 80-IB(10) of the Act, to encourage residential housing projects of units not exceeding specified built-up area. In order to avail of the tax exemption with regard to the housing project, the assessee has to fulfill all the conditions laid down under the beneficial provision of section 80-IB(10) of the Act and it would be sufficent if approval for the development of the housing project is taken from WBHIDCO because WBHIDCO has been appointed as the local housing authority capable of granting the same, as per notification mentioned supra. 14. It was also submitted that the term 'local authority' in common parlance would mean, 'local' meaning relating to or pertaining to a place and the term 'authority' means a person or organization having power or control in a particular sphere. Thus a local authority will mean a person or organization having power or control in a particular sphere relating to a place. Applying this in the assessee's case, it has to be held that WBHIDCO has been appoin....
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....d by the Revenue before the Tribunal reads thus: "1) Whether, on the facts and in the circumstances of the case, Ld.CIT(A) is justified in treating WBHIDCO as Local Authority for allowing deduction u/s.80-IB(10) although it does not fall under the categories as defined in Sec.10(20) of the I.T.Act." 17. When the case was called for hearing none appeared on behalf of the Revenue. We therefore proceed to decide the appeal after hearing the submissions of the learned counsel for the Assessee. 18. We have heard the submissions of the learned counsel for the assessee. The learned counsel for the assessee placed reliance on the decision of the Hon'ble Chennai Bench in the case of Sreevatsa Real Estates P.Ltd. vs ITO (2011) 9 ITR (Trib.) 808 wherein on identical facts the Tribunal held that the Village Administrative Officer was competent authority for approval of plans for the purpose of Sec.80-IB(10) of the Act. He also relied on the submissions made before the CIT(A) and the order of the CIT(A). 19. We have given a careful consideration to the submissions made on behalf of the Assessee and perused the orders of the AO and CIT(A) and other relevant material. We are of the view t....