TaxTMI 
TaxTMI 
2017 (12) TMI 1123
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....he case and in law, the Pr. CIT failed to appreciate and ought to have held that: (a) The AO has examined the issue after through verification and enquiry during the course of assessment proceedings and taken a correct view that Gram Panchayat Adai is a local authority so for as the assessee's housing project is concerned; (b) The Pr. CIT has accepted the fact that Gram Panchayat, Adai is authority to accord the approval; (c) The permission obtained by the appellant from district collector, Raigad was N.A cum sanction or housing project as per rules or real estate development project for Raigad Dist.; (d) The Pr. CIT has accepted the fact that the project was constructed in accordance with the law; (e) The Nagar/ Gram Panchayat are local authorities under the Income Tax Act, as well as constitution of India; (f) The approved Sanctioned plan was submitted, verified and accepted by the A.O; (g) The Pr. CIT has not pointed out any single defect from the details and documents submitted to the satisfaction of the A.O and as per the conditions laid down u/s 80IB(10); (h) In absence of order being erroneous and also prejudicial to the interest of the revenue, o....
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....ar the assessee firm developing and constructing a housing project name Satya Jyot bearing Survey No. 146, Hissa No. 3, 4 5B at Adai Village, Tal-Panvel, Dist-Raigad totally admeasuring about 5940 Sq. Mtrs. In this project the assessee firm has constructed 11 buildings viz. A to K. During the year under consideration assessee has shown total turnover of Rs. 21,47,95,000/-. After claiming various expenses, Net Profit has been shown at Rs. 14,29,60,532/-. The assessee has claimed entire profit as exempt u/s 80IB(10) of the I.T. Act, 1961. In support of this claim the assessee filed Form No. 10CCB certified by the Auditors." 3. The assessment order passed by AO was revised by ld. PCIT under section 263 of the Act on 31.03.2007 holding that assessment order passed by AO is erroneous and prejudicial to the interest of Revenue. The assessment order was set-aside with the direction to AO to pass the fresh assessment order after conducting detailed queries regarding the eligibility of claim of deduction under section 80IB. 4. We have heard the ld. Authorized Representative (AR) of the assessee and ld. Departmental Representative (DR) for the Revenue and perused the material available on....
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....thority competent to issue approval and completion certificate for housing project for claim under section 80IB(10). The Hon'ble Bombay High Court in PCIT vs. Swapnashilp Developers has dismissed the appeal of the Revenue holding that Gram Panchayat, Besa was competent for approval for housing project for the claim of provision of section 80IB. On the other hand the ld DR for the revenue relied on the order of ld PCIT. It was argued that gram Panchyat Aadai is not competent to approve the sanction plan and the same is not the authority competent such sanction and completion plan. The ld DR prayed for dismissal of the appeal. 5. We have considered the rival submission of the parties and have gone through the orders of authorities below. During the assessment proceeding, the AO issued notice under section 142(1) dated 27.11.2014 wherein the AO made the enquiry related with the project undertaken by the assessee with regard to area of project, date of approval of project from local authority, date of commencement, date of completion of the project and if the project is covered under section 80IB(10). The AO also made the enquiry related to size of residential unit, commercial area in....
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....tion certificates were annexed in the compilation. In one of the certificates, it was mentioned that the permission for construction was granted and the Gram Panchayat tax had also been deposited. The assessee has also placed on record a detailed map of the plots which were developed and informed that the said development plan was also sanctioned by the authority. Our attention has also been drawn on The Bombay Village Panchayat Act, 1958 which has provided that sanction of construction of building within the limits of village has to be granted by the Panchayat. So, the argument before us is that the village Panchayat is a local authority, therefore, competent to approve a housing project. On this issue, a judgment has been passed by ITAT Nagpur Bench, Nagpur in the case of ACIT Vs M/s. Chintamoni Builders, order dated 30-10-2015 wherein a discussion of The Bombay Village Panchayat Act, 1958 was made and it was found that the sanction of the construction of a building being situated within the limits of village, the approval has to be granted by the Panchayat. Because of that reason, it was held that the Village Panchayat is a local authority. Relevant portion of the said order is ....