TaxTMI 
TaxTMI 
2015 (10) TMI 2631
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....stances of the case and in law, Ld. CIT(A) erred in deleting the addition of Rs. 1,06,05,579/- (Rs.96,30,269/- for AY 2007-08) on account of disallowance of deduction u/s 80IB(10). 2. On the facts and in the circumstances of the case and in law, Ld. CIT(A) erred in holding that the assessee had fulfilled all the conditions for allowing deduction u/s 80IB(10) of the I.T. Act. 3. On the facts and in the circumstances of the case and in law, Ld. CIT(A) erred in holding that approval granted by the Gram Panchayat to the individual plots, tantamount to granting approval for the project as a whole. 2. Facts in brief as emerged from the corresponding assessment order passed u/s 147 read with section 143(3) dated 21-09-2010 for....
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....s claimed exemption u/s 80IB(10) in respect of the said projects. In the impugned assessment order the AO has discussed the details of the project. However, the objection of the AO was that in respect of Chintamani Nagri-I project the permission was not for the whole project. According to the AO there was no approval from the local authority for the housing project. As per the information available with the AO, the approval from Town Planning Department, Nagpur was for the purpose of sub plotting of land. 2.2 It is worth to mention at this juncture that the AO was aware of the fact, as noted in the assessment order, that in the past i.e. for assessment years 2004- 05 and 2005-06 the claim of deduction u/s 80IB(10) was denied by the AO. W....
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....tion of the AO was that the assessee had claimed that a permission for construction of bungalows were obtained from Gram Panchayat, Besa. The letters which were submitted by the assessee claimed to have been issued from Gram Panchayat were found recorded in the Gram Panchayat record. In the "proceedings book" maintained by Gram Panchayat a proceeding recorded was in respect of a electric work dated 25-06-2003. The communication received from Gram Panchayat, Besa was also communicated to the assessee. However, undisputedly the said letter was jointly signed by Gram Sarpanch and Gram Secretary. The AO has also made enquiries from the Collector and District Magistrate, Nagpur. It has also been questioned whether under any provision of law an a....
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....ity can regulate the use of land and there is no provision for regulating the construction of building. It has also been pleaded that in number of decisions, "Gram Panchayat of a village" is held as "local authority". The relevant paragraph from the order of learned CIT(Appeals) is extracted below: "The appellant placed reliance on the following decisions of ITAT, wherein it has been held that Gram Panchayat of village is the local authority for the purpose of grant of approval of housing project to make the appellant eligible for the claim of deduction u/s 80IB(10) of I.T. Act, 1961. 1. ITAT's order in ITA No.556/Mds/2011 in the case of True Value Homes (India) Pvt. Ltd. Dated 24th June, 2011. 2. ITAT's order in ....
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....see's own case pertaining to the past years. There was a discussion of Bombay Village Panchayat Act, 1958 and as per section 52, sanction of construction of building within the limit of village has to be granted by the Panchayat. On the said basis it was held that the village Panchayat is a "local authority". We have also perused the order of ITAT, Nagpur Bench, Nagpur bearing ITA No. 327/Nag/2008 assessment year 2005-06, order dated 5th June, 2009 wherein the Revenue has challenged the relief granted in respect of deduction u/s 80IB(10) by learned CIT(Appeals). There is one more order of ITAT, Nagpur Bench bearing ITA No. 448/Nag/2007 for assessment year 2004-05 titled as ITO vs. Chintamani Builders, order dated 5th of January, 2009 wherei....
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....has rightly. held that the assessee had sold the tenements to the buyer. by executing two agreements to split its sale consideration towards plot of land and construction of dwelling Unit. In view of the above, we uphold the order of the C.LT.CA) and dismiss e revenue's appeal." 5.1 We have also perused the order of ITAT, Nagpur Bench pronounced in the case of the assessee for assessment year 2003-04 bearing ITA No. 278/Na g/2008 titled as M/s Chintamani Builders vs. ACIT. The assessee had challenged the order passed u/s 263 of I.T. Act. The Tribunal has quashed the proceedings u/s 263 following the order of the Tribunal being the issue was stated to be covered in favour of the assessee by those decisions. 6. As far as the issue w....