TaxTMI 
TaxTMI 
2014 (5) TMI 1137
X X X X Extracts X X X X
X X X X Extracts X X X X
.... to Rs. 25,48,221/- - (a) Gram Panchayat is not a local authority competent to issue approvals and completion for the housing project and (b) the road area was not part of the project and hence the area of the land was less than one acre. 2. The appellant craves leave to amend or alter any of the grounds of appeal or addition to the same, if deemed necessary. 2. The assessee Mr.Hiraman N. Bhujbal proprietor of M/s.Shreyas Builders has claimed deduction of _ 25,48,221/- u/s.80IB(10) of I.T. Act. The Assessing Officer has denied the claim of deduction u/s.80IB(10) of the Act for the reason that the Grampanchayat is not local authority competent to issue approval and completion certificate for housing project and ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ctor vide letter dated 14.01.2010 communicated that no completion certificate was granted to any project approved before 31.12.2007, as mentioned above. Similarly, during the course of appellate proceedings, the assessee brought to the notice of the CIT(A) that clarification was issued by the Town Planning authority that in respect of area falling outside the jurisdiction of PMC, the procedure is to obtain completion certificate from the registered Architect and it was also pointed out that Grampanchayat Wagholi was the local authority for this purpose. In this regard, the stand of the assessee has been that there was no procedure to issue completion certificate by Town Planning Department in respect of construction beyond the PMC limits. S....
X X X X Extracts X X X X
X X X X Extracts X X X X
....building bye laws in particular area. The problem arose with regard to completion certificate by PMC by virtue of the fact that area of the land in question was excluded from PMC limits at relevant point of time as discussed above. In such peculiar conditions, the benefit bestowed on assessee should not be denied for no fault of the assessee. Such liberal interpretation should be used in favour of assessee when he is incapacitated in complying certain provisions for the reasons beyond his control. In case before us, problem arose due to the change of jurisdiction with regard to confusion of applicability of building bye laws because of change of jurisdiction by virtue of exclusion of land in question from PMC limits. The assessee should not....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... case of Ramsukh Properties (supra), Rahul Construction Co. (supra) and others. 16. In view of above, we hold that gram panchayat Keshav Nagar, Mundhwa, Pune, is local authority for the purpose of issuing completion certificate for claiming deduction u/s.80IB(10) in respect of profit from sale of eligible flats in project in question. Assessee fulfilled all conditions laid down for claim of deduction u/s.80IB(10) of the Act as detailed above. The Assessing Officer is directed accordingly." 3. Facts being similar, so following the same reasoning, we are not inclined to concur with the finding of CIT(A). We hold that the concerned Gram Panchayat is a competent local authority for the purpose of issuing approval and completion cert....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... such sacrifice of the builder was duly recognised and compensated by granting additional FSI for the said project. If we accept the proposition of the Revenue Department that the area which was directly under the building construction should only be held as the project for construction then a builder has to acquire a land more than 1 acre of land. Then only after the set-apart of the amenity space he could be left with the balance 1 acre for project development. But such a proposition was not intended in the legislature. The language of the section did not prescribe such hypothetication. Therefore an another reasoning of our rejection of such a proposition or the Revenue Department is that it would be illogical to expect from a builder to ....