2019 (4) TMI 1678

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....f by this common order. For convenience, we may record facts from Income Tax Appeal No.78 of 2017. 2. This Appeal is filed by the Revenue to challenge the Judgment of the Income Tax Appellate Tribunal ('the Tribunal', for short). 3. The following questions are presented for our consideration. (a) Whether on the facts and in circumstances of the case and in law, the ITAT was justified in allowing deduction u/s 80IB(10) of the Income Tax Act, 1961 to the assessee in respect of the Kores Towers project, without appreciating the fact that the commencement of the said project was in September, 1997 i.e. before the date of 01.10.1998 as stipulated in section 80IB(10)(a) and therefore as the said condition was not satisfied ....

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....or short). The opposition of the Revenue arises in the following background.   5. The Assessee had constructed 4 residential buildings referred to as A1, A2, B1 and B2 for which commencement certificate was issued by the local authority on 19/06/1997. The construction was completed in the year 2002-2003. Thereafter, the Assessee, in the same plot of land, undertook the construction of another building called 'Devpriya'. The commencement certificate for such construction was issued on 24/12/2003. The deductions under Section 80IB(10) would require the commencement of a housing project after 01/10/1998. The Revenue contends that this construction of Devpriya complex was extension of the existing project and that, therefore, th....

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....sq.ft. 8. The Tribunal, by the impugned Judgment, rejected both the objections of the Revenue. With reference to Devpriya, the Tribunal noted that the construction of an additional complex in the existing plot of land was possible on account of additional FSI being available to the Assessee. As on 01/10/1998, such project was not even conceived. Admitted facts are that commencement certificate for construction of Devpriya was issued by the local authorities long after 01/10/1998. 9. Similarly, in relation to Kores Nakshatra, the established facts are that the project was constructed on a piece of land where previously a factory was situated. Permission to close the factory was granted in the year 2003. Couple of years later, building ....