TaxTMI 
TaxTMI 
2015 (11) TMI 1653
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....) of the I. T. Act, 1961; 2. On the facts and in circumstances of the case and in law the CIT (A) erred in arriving at a finding that Besa gram Panchayat was the local authority and competent authority u/s 80IB (10) without considering the Development Control Regulations, 2000 Nagpur as amended from time to time and without appreciating the contents of Notification dt. 31.8.2010 issued by the Urban Development Department which appointed the Nagpur Improvement Trust as the Special Planning Authority for developing Notified area including Besa village. 3. On the facts and circumstances of the case the CIT (A) erred in holding that the assessee was eligible for deduction u/s 80IB (10) disregarding the fact that the housing project was neither approved nor commencement certificate and completion certificate were obtained from the competent authority prescribed u/s 80 IB(10) of the I. T. Act, 1961." 2. Facts in brief, as emerged from the corresponding assessment order passed u/s 143(3) of the IT Act dated 27-12-20011 were that the assessee firm is in the business of real estate and stated to be developing housing projects. For assessment year 2009-10, the assessee h....
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....rity:- The project was claimed to have been approved by Sarpanch, Gram Panchayat, Besa, Nagpur on 05-12-2006. An Inspector of Income Tax Department was deputed to verify the genuineness of the certificate issued. The Inspector had obtained the proceeding book from the office of the Gram Panchayat. It was found that permission was granted for construction in respect of plot Nos. 59 to 69 and R-4. On the other hand, the assessee has furnished permission in respect of plot Nos. 28 to 60 and R-4. According to the AO, the assessee was holding only 11 plots from plot No.59 to plot No.69 admeasuring less than One Acre area, hence one of the important conditions of Section 80 IB (10) of the Act was not fulfilled. (c) Completion certificate issued by local authority: The assessee has furnished completion certificate issued by an Architect. According to the AO, that was not admissible under the provisions of the Act; hence, the certificate issued by the Architect was rejected. The assessee has also furnished another completion certificate issued by the Sarpanch, Gram Panchayat, Besa, Nagpur dated 16-03-2011. The AO has questioned the said certificate on th....
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....quired approval from the Collector was obtained on 2.2.2005. From the reading of the provisions of the above Acts, I am of the considered opinion that Gram Panchayat is the Local Authority for the purpose of 80IB of the IT Act, 1961. The Housing project constructed by the appellant is located at Village Besa and gram panchayat Besa is being the local authority from whom the appellant has obtained the approval for the housing project. 10.11 The appellant placed reliance on the following decisions of ITAT, wherein it has been held that Gram Panchayat of village is the local authority8 for the purpose of grant of approval of housing 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 I.T.A. Nos. 248 & 249/Vizag/2009 in the case of Raghava Estates Ltd., Vijayawada Dated 4th August, 2011. 3. DCIT Vs. Arihant Foundations and Housing Ltd. (2012) 18 ITR (Trib) 588 (Chennai)." 4. On the next issue of completion certificate, the verdict of the learned CIT (A) was as under:- "11....
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....in orders listed below:- 1. ITAT Order, in ITA No.667/PN/2013 in the case of Hiraman Nivrutti Bhujal order dated 27/05/2014 2. ITAT Order, in ITA No.937/PN/2010 in the case of Shri Krishna Haribhau Lohokare order dated 28/02/2013 3. ITAT Order, in ITA No.556/Mds/2011 in the case of M/s. True Value Homes (India) P. Ltd., order dated 24/6/2011 4. ITAT Order in ITA No.248 & 249/Vizag/2009 in the case of Raghava Estates Ltd order dated 4/8/2011 5. (2012) 18 ITR 0588 (Chennai) DCIT VS Arihant Foundations and Housing Ltd. 6. ITAT Order, in ITA No.327/Nag/2008 in the case of M/s. Chintamani Builders order dated 05/06/2009 7. ITAT Order in ITA No.248/Nag/2007 in the case of M/s. Chintamani Builders order dated 05/01/2009 8. (1992) 196 ITR 0149 (SC) CIT Vs Gwalior Rayon Silk Manufacturing Co. Ltd. 9. (1989) 177 ITR 0431 (SC) CIT Vs Strawboard Manufacturing Co. Ltd. 10. (1992) 196 ITR 0188 (SC) Bajaj Tempo Ltd. Vs CIT 11. (2013) 84 DTR 0383 (Trib.) Ramsukh Properties Vs DCIT. 7. We have heard both the sides at some length. The assessee is a partnership firm engaged in the business of develop....