TaxTMI 
TaxTMI 
TaxTMI 
2018 (6) TMI 754
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....B(10) of I.T. Act, 1961. 2. The addition made by A.O. by disallowing the claim of deduction u/s. 80IB(10) of IT. Act 1961 and confirmed by CIT(A) is unjustified, unwarranted and bad in law. 3. The learned A.O. and Hon'ble CIT(A) erred in holding that assessee is not having proper sanction of project from local authority as per provision of section 80IB(10) of IT. Act 1961. 4. The assessee denies liability to be assessed to interest u/s 234A, 234B & 234C of income Tax Act 1961. Without prejudice the interest levied u/s. 234A, 234B and 234C is unjustified and unwarranted. 3. Brief facts of the case are that the assessee derives income from the business of civil construction in respect of housing projects namely Green Court Project ....
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....the Hon'ble jurisdictional High Court. In this regard, the submissions of the learned counsel of the assessee are summarized as under: A) The assessee has derived income from Development of Housing Project u/s 80IB of I.T. Act 1961. Assessee has fulfilled the requisite conditions for grant of deduction u/s 80IB. The Housing Project was in village Godhani and Local Authority was Gram Panchayat, Godhani. Sanction of map and completion certificate for Housing Project was obtained from Gram Panchayat and placed on record. B) A.O. has observed that Gram Panchayat Godhani is hot the local authority to sanction the plans of housing project and to issue commencement certificate and completion certificate. A.O. has not disputed fulfillment o....
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....es that sanction of construction of building within the limits of Village has to be granted by the Panchayat. Accordingly, the Village Panchayat is local authority and competent authority which has approved the housing project of assessee company. G) Section 10(20) of IT. Act, 1961 relates the income of local authority being exempt under the provision of IT. Act, 1961. Explanation to sec. 10(20) provides meaning of local authority. Expl. (i) provides panchayat as referred in clause (a) of Article 243 of the constitution is the local authority. Local Authority is not defined under the provision of IT. Act 1961 and thus it would be reasonable to take aid of sec. 10(20) to conclude that Village Panchayat is Local Authority. H) Gram Panchay....
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....hilp Developers where similar approval was there from the Gram Panchayat on 5.12.2006. In the said case, the tribunal had held that the Gram Panchayat was the competent authority. The matter had travelled to the Hon'ble jurisdictional High Court. The Hon'ble jurisdictional High Court in Income Tax Appeal No.25 & 26 of 2016 vide order dated 24th October, 2016 has elaborately dealt with the issue and confirmed the order of the ITAT by observing as under: On hearing the learned Counsel for the parties and on a perusal of the orders of the Income Tax Appellate Commissioner of Income Tax (Appeals), it appears that a clear finding of fact is recorded by both the Authorities that the Gram Panchayat - Local Authority had granted the sanct....
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....on of the material on record and they do not give rise to any substantial question of law. The submission made on behalf of the appellant - Revenue that in similar matters in respect of other development projects, this Court has admitted the appeals on two substantial questions of law and, therefore, these appeals should be admitted is not well founded. We have perused Income Tax Appeal Nos. 16/2016, 17/2016 and 20/2010. In the said appeals, it was the case of the Revenue that there was no permission from the Local Authority for the development of one acre of plot and separate permissions were secured for construction of houses of individual plot owners. Also, in those appeals it was the case of the Revenue that the housing project was not ....