TaxTMI 
TaxTMI 
2018 (3) TMI 297
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....of income on 29-09-2011 declaring total income of Rs. 3,22,31,984/-. Assessee claimed the deduction of Rs. 3,75,97,564/- in respect of units sold during the year in building A1 to A6 which were part of project 'A'. However, the assessee claims to have completed the construction of the said building before due date i.e. 31.03.2008. But, the initial plan sanctioned comprised of two projects i.e. project 'A' and 'B' and since project 'B' had not started. Therefore, the deduction claimed under section 80IB(10) of the Act was denied to the assessee in A.Yrs. 2009-10 and 2010-11 by the AO. CIT(A) confirmed the same. Aggrieved with the order of CIT(A), assessee filed appeals before the Tribunal for A.Yrs. 2009-10 and 2010-11. The Tribunal vide ITA No.1260/PN/2013, order dated 31-12-2015 and ITA No. 883/PUN/2014, order dated 07-04-2016 allowed proportionate claim of deduction under section 80IB(10) of the Act to the assessee in respect of completed units in project 'A'. 4. At the outset, before us, Ld. Counsel for the assessee submitted that this is the third year the assessee claimed the deduction u/s.80IB(10) of the Act. He further brought our attention to the order of CIT(A) and submit....
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.....1999 and the copy of the same is placed at page 41 of the Paper Book. The PMC again issued a commencement certificate No.2141 dated 09.06.1999 after the objection was met by the assessee. The copy of the said commencement certificate issued by the PMC is placed at page 40 of the Paper Book. The assessee claims that the second commencement certificate was also issued with the condition meaning Nalla / gutter for rain water was to be removed after the payment of charges and the actual commencement certificate was issued on 17.04.2004, copy of which is placed at page 43 of the Paper Book. The plea of the assessee before us is two-fold in this regard. Though the commencement certificate, if any, issued prior to fulfilling the condition of Nalla / gutter for rain water, and the restriction imposed by the ULCA having not been complied with, the clear area of 12094 sq. mtrs. was available with the assessee only when third commencement certificate was obtained on 14.07.2001. The company M/s. Sharan Estates Pvt. Ltd., did not commence the construction against which and the AOP was formed on 19.04.2004, which was formed as pre-condition to the plans sanctioned on 17.04.2004. The case of the....
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....the date on which the building plan of such housing project is first approved by the local authority. There are other conditions laid down in section i.e. in respect of project being a size of plot of land generally a minimum area of one acre and the residential units being not exceeding the built up area of 1500 sq. ft. and certain restrictions on the commercial area. Admittedly, all the other conditions prescribed under section 80IB(10) of the Act stand fulfilled i.e. the project is on an area exceeding one acre and built up area of the units completed by the assessee are less than 1500 sq.ft. The question which arises before us is first the date on which the project has been approved by the local authority, commenced development and construction of the housing project and secondly, the date on which the said project has been completed. 12. The second aspect of the issue raised before us is that where initially the project was envisaged to comprise of projects A and B and where the project B has not completed the development and construction, can the deduction under section 80IB(10) of the Act be allowed to the project A or the same has to be denied. The case of the Assessing ....
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....ined more than once, then such housing projects shall be deemed to have been approved on the date on which the building plan was first approved by the local authority. The building plans in the case of assessee after the declaration of surplus land by the ULCA was first approved on 09.06.1999 with certain conditions, which were later fulfilled by the assessee. Merely because another plan for commencement which was sanctioned on a later date i.e. 14.07.2001 and 19.04.2004 relates to the initial plan sanctioned on 09.06.1999 and in view of Explanation to section 80IB(10)(a) of the Act, we hold that the plans in the case of the assessee to construct project A were approved on 09.06.1999 since these were sanctioned on or after first day of October, 1998, but before first day of April, 2004, then the provisions of section 80IB(10)(a)(i) of the Act are applicable and the assessee had to complete the construction on or before 31.03.2008. The assessee in this regard drew our attention to the copy of Occupancy certificate in local language dated 31.03.2008 placed at page 72 of the Paper Book. However, English translation of the said document is not available on record and it is not clear as....