TaxTMI 
TaxTMI 
2017 (12) TMI 1391
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....ng project. During the course of assessment proceedings, the claim of the assessee for deduction under section 80IB was examined by the AO. On such examination, he found that the housing project of the assessee was approved by Jodhpur Development Authority on 07.12.2006 and it was to be completed by 31.03.2012 in order to be eligible for deduction under section 80IB. He found that the said project was comprising of 7 phases out of which only 5 phases were completed by the assessee by 31.03.2012 and the deduction was claimed under section 80IB(10) in respect of these 5 phases. According to the AO, the assessee was required to complete the entire project within the stipulated time and having failed to comply with the requirement, it was not eligible for deduction under section 80IB(10). He also noted that the completion certificates for the project was not obtained by the assessee from the concerned local authority i.e. Jodhpur Development Authority. He, therefore, disallowed the claim of the assessee for deduction under section 80IB in the assessment year under section 143(3) vide an order dated 03.03.2015. 3. Against the order passed by the AO under section 143(3), an appeal was....
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....the appellant has commenced development and construction of the housing project on or after the 1st day of October, 1998. The AO has caused physical verification of the project by ADIT (Inv.), Jodhpur and from his report, he ascertained that the building plan was sanctioned for seven phases in the same project and the appellant could complete five of the seven phases by 31.03.2012 and the remaining two phases were completed after 31.03.2012. The AO's contention is that since the entire project was not completed within 31.03.2012, the appellant is not entitled to deduction even in respect of the completed phases. The appellant's contention on the other hand, is that it is entitled to deduction in respect of the completed phases and it claimed deduction u/s 80IB(10) in respect of the completed five phases only. From the paper-book filed by the appellant, it is seen that the appellant has prepared final accounts for each of the five phases - phase I, IA, II, III and IV and reports in Form No. 10CCB for each of the projects. 7. In CIT vs Gwalior Rayon Silk Manufacturing Co. Ltd. (1992) 104 CTR (SC) 243, Hon'ble Supreme Court has held: "The contextual meaning has to be....
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.... Puna Bench of ITAT in Varun Developers, Pune vs DCIT, ITA No. 1624/PN/2011 & Hemraj S. Mundada vs Adl CIT, ITA No. 1328/PN/2009 has observed that in regard to Hemraj S. Mundada's cases relied upon by the assessee, the AO has wrongly held that its ratio is not applicable to the assessee's case. The finding of the ITAT in that case is as under: 'Since in the instant case the assessee has obtained the completion certificate before 31.03.2008 and out of the 83 flats the assessee has claimed deduction u/s 80IB(10) in respect of 61 flats where the built up area is less than 1500 sq.ft. and has not claimed the deduction u/s. 80IB(10) in respect of 22 flats where the built up area exceeds 25sq.ft., therefore, following the consistent view of the Coordinate Benches of the Tribunal we hold that the assessee is entitled to deduction u/s 80IB(10) in respect of the 61 flats of the housing project 'Leela Garden'. 8. As regards AO's contention that the appellant has violated the condition as to obtaining the completion certificate from the local authority, it is observed that the appellant had made applications to jDA for issuing the completion certificate of each phase of the ....
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....ribunal vide its order on 22.01.2016 passed in ITA No. 12/Kol/2014. He has also placed on record a copy of the said order and perusal of the same shows that this aspect has already been considered and decided by the Tribunal in favour of the assessee vide paragraph no 4.1 to 4.1.6 of its order which read as under: "4.1. Completion certificate not obtained from local authority as contemplated in section 80IB(10) of the Act. The Learned AR argued that the assessee after completion of construction of phase I and phase 1A of the project had applied for completion certificate to Jodhpur Development Authority, the local authority, who is in charge of issue of such certificate. In reply to the said application, the said authority informed the assessee that completion certificate is issued to such buildings which are above than 15 meters in height and stated that for official purposes, a certificate from registered architect would suffice. Accordingly the assessee sought to obtain a completion certificate from a Registered Architect. It would be pertinent to reproduce the letter of Jodhpur Development Authority addressed to the assessee expressing their inability to issue the comp....
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.... comprising of 95 dwelling units bearing no. E-16 to E-30, N-08, N-35 to N-50, N-77 to N-84, S-01 to S-12, S-36 to S-59, S-86 to S- 97 situated at Village Kuri Bhagtasani, Patwar Jhalamand. Tehsil & District Jodhpur, Rajasthan have been completed in all respect as per approved drawing & as per norms of Building Bye Laws. This is to further certify that the project Ashiana Amarbagh, Phase I is fit for residential use with all facilities. Sd/- Biswajit Sengupta Regd Architect: CA/75/886 BISWAJIT SENGUPTA B.Arch, P/1A Regd. Architect CA/7B/BBC 4.1.2. It would also be pertinent to reproduce the bye laws of Jodhpur Development Authority which has been placed on record by the Learned AR wherein it has been stated as under: "15. Completion Certificate: 15.1 On completion of building having a height of more than 15 metres the builders has to obtain a completion certificate. The said certificate will be given by the competent authority only after necessary verification and according to the following procedures". 4.1.3. We find from the above correspondences that the assessee had duly applied f....
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....date on which the project was completed to be eligible for the benefit of the said provision. The revenue contends the completion certificate issued by the village Panchayat is not valid and therefore the assessee is not entitled to the said benefit. Admittedly the plan is sanctioned by the BDA. The BDA has not issued any completion certificate. The reasons being in the BDA Act or the Karnataka Municipal Corporation Act, there is no provision for issue of completion certificate. The provision in the Karnataka Municipal Corporation Act is for issuance of occupancy certificate. When the statute does not provide for issue of a certificate, if the authorities were insisting on such certificate, the assessee has gone to the village panchayat within whose limits the property is situated and has obtained the completion certificate and has produced the same for availing the benefit. Whether that certificate would satisfy the requirement of law need not be gone into in these proceedings because when the statute does not provide for issue of such a certificate, if the revenue insists on such certificate, the assessee would be left with no option except to get such certificate with some autho....