2020 (4) TMI 647

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....come Tax Act, 1961 holding that the housing project of the assessee was approved by the Collector Pune not as local authority defined u/s. 3(31) o the General Clauses Act?" 3. Briefly stated the relevant facts include that the assessee is a partnership firm and engaged in the business of Real Estate Development and construction of residential project. The assessee filed the return of income declaring total income of Rs. 3,63,33,330/-. During the year under consideration, the assessee developed a housing project named "Konark Exotica" situated at Wagholi, Pune. The assessee claimed deduction for the said project amounting to Rs. 12,40,34,451/- u/s 80IB(10) of the Act after obtaining the requisite approval by the District Collector to the ....

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....e Act in question. In this regard, the ld. Counsel filed a Paper Book containing various judgements/decisions in support of the claim of the assessee. 8. After hearing both the sides and considering the Paper Book filed before us, we find the CIT(A) took right step to allow the claim of deduction u/s 80IB(10) of the Act and the finding of the CIT(A) on this issue is justifiable. Further, we find it relevant to extract the contents of para 5.18 and 5.19 of the order of the CIT(A) and the same are extracted hereunder :- "5.18 In fact, the jurisdictional High Court in ITA No.25 and 26 in the case of Pr.CIT Nagpur vs. M/s. Swapnashilpa Developers has held that, the approval granted by the Village Panchayat for the housing project....

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...., Tal. Haveli, bearing Gat Nos.866/1, 866/2, and 868, total area 49400 sq.mtr. out of which after deducting area under the green zone 16532, and area under the 4932 sq.mtr. to use remaining area 27936 sq.mtr. for proposed parking + 6th parking + 7th floor revised construction which is subject to the following terms and conditions : ........... 24) For A Class Municipal Council Byelaws as per R.18.1 the is required to provide facility of lift. 25) When the developer shall make construction upto plinth level it will be binding to inform to this office. And approval of the construction by the Collector, the further construction will be made. 26) The applicants shall submit certificate for structural....