AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2017 (12) TMI 1336
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....ued by a local architect was compliance with reference to completion of the project. The appellant pleads that under the provisions of the MRTP Act, 1966 it could not be expected to produce a completion certificate from the Collector of Pune certifying its project as complete before 31.03.2011. 2. The AO erred in rejecting the appellant's claim of deduction u/s.80IB(10) on grounds of non issue of completion certificate by the local authority notwithstanding the fact that the assessee's Kirti Elegant project was completed and duly certified as complete by its architect on 09.01.2009 (within the due date of 31.03.2011) and eligible for deduction under section 80IB(10) of the Income Tax Act,1961. 3. The Hon CIT(A) erred in holding that as the appellant's Kirti Elegant project at village Mhalunge was not certified as complete by the Gram Panchayat Mhalunge and that the assessee had not brought on record any material suggesting any efforts made for obtaining the said certificate from the Gram Panchayat, the appellant's claim for deduction u/s.80IB(10) fails as conditions u/s. 80IB(10)(a) remain to be fulfilled. 4. The appellant pleads that the action of the AO a....
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....f the flats by the flat buyers were also furnished before the authorities. However, the CIT(A) focused on this core issue of non-issuance of completion certificate by the local authority. CIT(A) gave a detailed discussion on this issue in various sub paragraphs of Para No.3 of his order. The fact of furnishing the completion certificate dated 09-01-2009 from the Architect to the local authority was also discussed. CIT(A) held the completion certificate issued by the Architect is not the requirement of the law. He insisted on the completion certificate issued by the local authority. He also considered the fact the helplessness of the assessee when the local authority passively refused to issue any such certificate in the absence of any system in existence with such revenue authority of the State of Maharashtra. Eventually, the CIT(A) discussed and relied on the order of the Tribunal in the case of Shri Krishna Lohokare in ITA No.937/PN/2010 for A.Y. 2006-07 for the proposition that the local authority is the issuing authority of the completion certificate for enabling the assessee to claim deduction u/s.80IB(10) of the Act. It was a case where Gram Panchayat, Keshav Nagar, Mundhwa, ....
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....located beyond Municipal Corporation limits) as complete on or before 31.03.2011. 2. The appellant's housing project was sanctioned by the Collector, Pune on 06.07.2005 and completed by January 2009. All flats in the scheme were sold out and handed over to customers in Y.E. 31.03.2008, 31.03.2009 and 31.03.2010. 3. On 17.01.2009 the appellant applied to the Collector, Pune for issue of Completion Certificate by enclosing the project architect's certificate certifying completion of the project. The (Page no. 60 to 63 of Paper Book - I). These documents are on the AO's record and have been considered in the assessment and in appellate proceedings before CIT(A). The Collector's office did not issue a completion certificate as such a procedure was not in existence. 4. Subsequent to the order of the CIT(A), the appellant through his CA, Shri K B Joshi applied to the offices of the Collector, the Asst. Director of Town Planning and the Grampanchayat Village Mahalunge for information under the Right to Information Act, 2005 regarding issue of Completion Certificate in respect of building projects located in areas beyond municipal corporation limits in general and ....
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....ies in asking the assessee the impossibility may be verified by them before denying the claim of deduction. He submitted that when the project is otherwise completed in all respect, the flat buyers took the possession of the said flats and when there are no complaints whatsoever on the aspects of completion of the housing project, the denial of deduction for want of a certificate is unjustified and unsustainable in law. Assessee's Authorised Representative sought a direction to the AO in this regard. 10. Per Contra, Ld. DR for the Revenue brought our attention to page No.328 of the paper book granting sanction to revised lay out and submitted that as per Item No.17 of the approval letter of the Collector, Pune District, the applicant is under obligation to take completion certificate from the Assistant Director, Town Planning, Pune after completion of the construction. Further, Ld. DR submitted that the assessee never approached the Assistant Director, Town Planning for such a certificate. Therefore, despite specific instruction from the Collector, Pune, the assessee never approached the correct authorities for issuance of the completion certificate as required under the law. 11.....
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....having any illegalities associated with the project qua the construction of the project are on records of the local authority or the District Collector. 13. In these circumstances, we are of the opinion that these papers/additional evidences filed by the assessee before us are required to be admitted as the same are obtained by the assessee in the period subsequent in time under the Right to Information Act, 2005. Therefore, considering the principles of natural justice, we are of the opinion that these papers should be remanded to the file of the AO for considering the same and decide the issue based on the facts relating to the issue of completion certificate. AO shall grant reasonable opportunity of being heard to the assessee in accordance with set principles of natural justice. AO shall also consider, the ratio of the judgments/decision of the Tribunal (supra) relied upon by the Ld. Counsel for the assessee and allow the claim of deduction if the said decisions are applicable to the facts of the present case. AO is directed to pass a speaking order with special reference to the completion certificate on the peculiar facts of the instant case as well as the judgmental law on t....