TaxTMI 
TaxTMI 
2013 (10) TMI 1490
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....he assessee has raised the following Grounds of Appeal: - "1) The learned CIT(A) erred in conforming the denial of the deductions of Rs. 7,08,34,948/- in respect of the project Harsh Paradise on the ground that the assessee had not completed the said project by 31st March, 2008. 2) The learned CIT(A) erred in holding that since the assessee had not completed the said project by 31st March, 2008 and also had not received the completion certificate from the local authority till the date, the assessee company was not entitled to claim the deduction u/s. 80IB (10). 3) The learned CIT(A) failed to appreciate that the assessee had completed the construction of the entire project including the four flats of building H - ....
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....ngs viz. H-1, H-2, H-3, H-4 and G building. The building 'G' was to be handed over to the Pune Municipal Corporation i.e. PMC for allotment to the weaker-sections of the society. The project was approved by the local authority i.e. PMC whereby construction of the entire project consisting of H-1, H-2, H-3 and G building and four flats of H-4 building were sanctioned. The construction of four flats in H-4 building was to be carried out by the assessee after purchase of transferable development rights i.e. TDRs on account of lack of FSI in the hands of the assessee. In terms of section 80-IB (10) (a) (i) of the Act, the stipulated due date of completion of construction of the project was 31.03.2008. The Assessing Officer observed that the ass....
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....sallowance by noticing that in relation to the preceding assessment year of 2008-09, similar disallowance was made by the Assessing Officer, which stood confirmed by the order of the then CIT(A) dated 05.09.2011. 6. In the immediately preceding assessment year of 2008-09 also assessee had claimed deduction u/s. 80-IB (10) of the Act in relation to the profit derived from the project 'Harsh Paradise' and the same was denied under identical circumstances as noted above. At the time of hearing before us, the learned Representative for the assessee pointed out that the order of the CIT(A) for the preceding assessment year of 2008-09 was a subject-matter of consideration by the Tribunal vide ITA No. 1624/PN/2011 dated 22.03.2013 whereby the c....
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....section of the society. The housing project was approved by the local authority on 28.05.2003 wherein plan for construction of whole project including H-1, H-2, H-3 & G building, and first floor of H-4 building was sanctioned. The assessee was planning to purchase further TDR for construction of remaining floors of H-4 building. As the project was sanctioned before 01.04.2004, the due date of completion of the project was 31.03.2008. It is undisputed that the assessee has received the completion certificate in respect of H-1, H-2, H-3 & G building on 19.03.2008 and 06.03.2007. However, in respect of the building H-4, the assessee submitted that the TDR could not be purchased and, therefore, the building H-4 could not be completed and hence ....
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....he fact that assessee has completed the construction in respect of buildings H-1, H-2, H-3 and G as discussed above. There is also no dispute of area of the plot as laid down in provisions of section 80IB(10) of the Act, on which project took place. Only dispute is that building H-4 was not completed at relevant point of time so claim of assessee should not be disallowed as a whole. Whatever portion completed by assessee which satisfy the condition prescribed u/s.80IB(10) is eligible for deduction as held in Brigade Enterprises Pvt. Ltd. (supra). 16. In case before us, assessee has received the completion certificate with regards to buildings H-1, H-2, H-3 and G as stated above. So assessee is entitled for claim of deduction u/s.80....