2018 (7) TMI 1988

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....f facts of the case as emanating from records are : The assessee is a builder and developer. The assessee developed a housing project "Fortune East‟ at 12/1, Mundhawa Bypass Road, Kharadi, Pune. The assessee had obtained first approval of the building plan in respect of above project on 17-05-2005. The assessee in its return of income for assessment year 2010-11 had claimed deduction u/s. 80IB(10) to the tune of Rs. 4,85,22,353/-. The Assessing Officer denied assessee‟s claim of deduction u/s. 80IB(10) on the ground that the assessee should have completed the project before 31-03-2011. However, the assessee has failed to furnish completion certificate in respect of any building or flat of the housing project "Fortune East‟....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... authority i.e. PMC approved issuance of completion certificate but deferred the issuance of formal completion certificate until the amenity space is taken over by PMC. The ld. AR further contended that the fact of completion of project has not been doubted or challenged by the Department. The only objection is of nonavailability of completion certificate from PMC. Non-availability of completion certificate from Local Authority should not prejudice assessee‟s claim of deduction u/s. 80IB(10) of the Act. The ld. AR in support of his contentions placed reliance on the following decisions : i. Commissioner of Income Tax Vs. CHD Developers Ltd., 362 ITR 177 (Delhi); ii. Commissioner of Income Tax Vs. Hindustan Samuh Awas Ltd., 377 I....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....an Samuh Awas Ltd. (supra) and Commissioner of Income Tax Vs. Tarnetar Corporation (supra) the common factor is, the assessee in the respective cases after completion of housing project had applied to the local authority for issuance of completion/occupation certificate well in time. The Hon‟ble High Courts in the backdrop of this fact held that merely for the reason, the local authorities have failed to issue completion/occupation certificate within the reasonable time, the benefit of deduction u/s. 80IB(10) cannot be denied to the assessee, who otherwise have completed the housing project and have applied for approval well before the due date. 8. In the instant case we find that the Architect issued completion certificate confirmi....