2010 (12) TMI 1309

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.... these cases, assessments were completed under sec.143(3) of the I.T. Act, 1961. Thereafter the Commissioner of Income-tax examined the records of the case and found that the Assessing Officer has allowed the claim made by the assessee under sec.80IB(10), without examining the issue in its correct perspective. The Commissioner of Income-tax found that the Assessing Officer has not applied his mind on this issue which is evident from the fact that the assessee has not produced completion certificate to claim the deduction as required by the provisions of the law contained in sec.80IB. The Commissioner of Income-tax accordingly, set aside the assessment orders on this particular point directing the Assessing Officer to re-consider the assesse....

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....r sec.263. 3. Shri Shaji P. Jacob, the learned Commissioner appearing for the Revenue, on the other hand, submitted that the assessee cannot claim deduction under sec.80IB(10) if the statutory requirements prescribed therein have not been complied with. The statute provides for production of completion certificate for claiming deduction under sec.80IB(10). The assessee has not produced such a certificate in respect of assessment years 2004- 05 and 2005-06. Further, the Assessing Officer has not discussed anything in his orders on the question of deduction under sec.80IB(10) which shows that the assessing authority has not applied his mind. Therefore, the assessment orders are erroneous and prejudicial in as much as the income of the asse....

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....the completion certificate. The completion certificate would be available only when the project is physically completed. As far as this case is concerned, the assessee has produced completion certificate with reference to the previous year 2007-08 relevant to the assessment year 2008-09. Having accepted the method of recognition of income employed by the assessee and the return filed by the assessee, the Revenue cannot argue that the assessee cannot claim corresponding deduction from the income returned. If so, that would violate the matching principle. When income is assessed yearly basis, the assessee is entitled to claim eligible statutory deduction from such yearly 'income'. While the income is assessed year-wise, the deductions also ha....