TaxTMI 
TaxTMI 
2019 (4) TMI 417
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....t 'the Act'). 2. This bunch of appeals filed by Revenue relating to the same assessee on similar issue were heard together and are being disposed of by this consolidated order for the sake of convenience. However, in order to adjudicate the issue, reference is being made to the facts and issues in ITA No.2898/PUN/2016, relating to assessment year 2007-08. 3. The Revenue in ITA No.2898/PUN/2016, relating to assessment year 2007-08 has raised the following grounds of appeal:- 1. On the facts and circumstances of the case, the Ld. CIT(A) has erred in allowing claim of deduction u/s 80IB(10) of the I.T. Act of assessee on prorata basis, as the Income Tax Act does not allow for deduction u/s 80IB(10) on pro-rata basis rather it ta....
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....led an application for completion certificate before the PMC. Each of the flat built in the said project was with built up area of less than 1500 sq.ft. The Assessing Officer noted that as per revised return of income filed by assessee, it had claimed deduction under section 80IB(10) of the Act at Rs. 1,01,48,527/- as against gross total income of Rs. 1,07,05,781/-. The Assessing Officer during the course of assessment proceedings made certain enquiries through the Inspector as well as with PMC and as per information received, the project in question was incomplete as on 31.03.2011. It also came to his notice that the assessee had wrongly stated that its application for completion certificate to PMC was made on 30.03.2011, whereas the PM....
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.... purchased, etc. The CIT(A) however, took note of the copy of application for occupancy certificate filed during appellate proceedings, which was submitted before the Assistant Engineer, PMC, wherein it was clearly mentioned that application dated 25.03.2011 was submitted in the said office on 30.03.2011 i.e. well within stipulated date. The scanned copy of letter is reproduced at pages 27 and 28 of appellate order. The CIT(A) then observes that the assessee had submitted its application within time frame, however, due to construction of seven additional floors without approval in building-B, the completion certificate was issued only on 27.07.2012 after the payment of compounding fees by the assessee to local authority. Regarding supply of....
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....lding-B and allow the claim of deduction on remaining profits. 7. The Revenue is in appeal against the order of CIT(A) in this regard. 8. From the perusal of above said facts and circumstances, it is apparent that where the assessee had commenced construction of project on 11.07.2005 and had completed the project by 31.03.2011, against which application for issue of completion certificate was also filed before the PMC, merely because the completion certificate was not given to assessee till 2012, can the assessee be denied the deduction claimed on prorata basis on the completed units in the approved housing project. Undoubtedly, the housing project was approved and certain floors were approved to be constructed. The assessee got appro....
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....rried out by the CIT(A) and information was received from the Assistant Engineer, PMC, Pune and the copy of said application for occupancy certificate is scanned and placed at pages 27 and 28 of the appellate order. Hence, it is clearly proved that the application was filed within time in respect of 11 floors of building-A and 4 floors of building-B. Once the same have been completed within stipulated time, merely because the completion certificate has not been received, cannot result any denial of claim of deduction under section 80IB(10) of the Act in respect of completed units. The assessee is entitled to the prorata deduction in this regard. However, the assessee is not entitled to claim any deduction under section 80IB(10) of the Ac....