TaxTMI 
TaxTMI 
2017 (3) TMI 814
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....rounds:- "1. On the facts and in the circumstances of the case and in law, the Ld CIT(A) erred in allowing deduction u/s 8013(10) of the Act, without appreciating the fact that the project is not eligible for deduction u/s 801B (10) of the Act, 2. On the fact and the circumstances of the case and in law, the Ld C I T (A) failed to appreciate the provisions of section 801B (10) of the Act which are very categorical that it is the date of approval of the housing project and not the commencement. 3 The appellant prays that the order of the Ld CIT (A) on the above grounds be reversed and that of the Assessing Officer be restored." 2. The solitary issue raised in this appeal is with regard to eligibility of the assessee to claim dedu....
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....completion has also been computed wrongly by the AO. After considering the submissions of the assessee it was found by the Ld. CIT(A) that the actual date of approval by Thane Municipal Corporation is 05-10-2006 and if 5 years' period is computed from the end of the said financial year, i.e. from 31-03-2007, then the stipulated date of completion would be 31-03- 2012. Since the assessee has completed the project before the said date of 31-03-2012, the assessee would be eligible to claim the benefit of deduction u/s 80IB(10). Relevant part of order of Ld. CIT(A) is reproduced below:_ "3.6. I have gone through the order of AO as well as the submis s ion made by the appellant. The appellant has been denied the deduction under section 80IB(1....
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....e has in its concluding para has categorically stated that the aforesaid project was said to be approved on 05-10-2006 i.e. the date on which the commencement certificate was granted: " In the instant case since development permission has been granted subject to fulfillment of various basic conditions like permission for use of said plot for non-agricultural purpose etc. without obtaining permission for non-agricultural use and fulfilling the conditions specified in development permission developed is not allowed to carry any development activities . Hence date of obtaining commencement certificate i.e. 05-10-2006 is the date on which plans are said to be approved for commence of work." In view of this statement of the approving authority, ....
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....ne through the orders passed by the lower authorities and the judgments relied upon before us. During the course of hearing, the Ld. Counsel of the assessee submitted before us the chronology of events which are relevant to decide the issue before us, which are as below: Dates & Events: Sr.No. Date Event 1. - The Appellant is a Partnership Firm, engaged in the business of development housing projects. During the year under consideration Appellant developed a project "Platinum Lawns", Kasar - Vadavali, Thane (West) and claimed deduction under section 80IB(10) of the Act. 2. 10.10.2005 The Appellant preferred an application before Thane Municipal Corporation for seeking permission for development of the said proj....
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.... According to assessee, this is actual approval for starting construction of the project. Before the commencement certificate was issued, various other legal formalities were yet to be executed on the part of the assessee and all the approvals given by the respective authorities were interim and tentative/provisional approvals and these were subject to various 'ifs and buts'. Assessee was not entitled to commence construction of the project before obtaining the commencement certificate for construction of the project. The assessee has also filed all the approval letters issued by various authorities from time to time. We have gone through all the documentary evidences brought before us. It is noted that Thane Municipal Corporation issued pe....