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TaxTMI 
TaxTMI 
TaxTMI 
2022 (6) TMI 476
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.... disallowance of Rs.3,05,53,176/- i.e erred in allowing the deduction u/s 80IB(10) of the IT Act, 1961, without appreciating the fact that the project was not completed before the due date of 31st March 2012 since the occupancy certificate was received by the Assessee on 21-01-2012 due to the fact that the assessee has fulfilled the condition to receive completion certificate of handing over of the amenity space to the PMC only on 22-05-2012. 2) On facts and circumstances of the case, the learned CIT(A)- 9, Pune has erred in allowing the deduction u/s 80IB(10) of the IT Act, 1961, relying upon the decision of Hon'ble High Court in the case of CIT vs. Hindustan Samuh Awas Limited (2015) 377 ITR 150(Bom.) without appreciating the fact that ....
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....sallowing the claim for deduction u/s 80IB of Rs.3,05,53,176/-. The Assessing Officer denied the claim for deduction u/s 80IB on the ground that the final completion certificate was granted by the Pune Municipal Corporation, Pune (PMC) on 21.07.2012 which is beyond the prescribed dated 31.03.2012 for completion of the housing project rejecting the contention of the appellant that the application for completion certificate was made on 27.03.2012 before the PMC. The Assessing Officer also declined to follow the decision of ITAT, Pune Benches in assessee's own case vide ITA No.142/PUN/2015 for A.Y. 2011-12, order dated 18.08.2017 as the Department is contending the correctness of the decision before the Hon'ble Bombay High Court. 4. Being agg....
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....ssessee submitted that the assessee vide letter dated 27.02.2007 submitted to the Assistant Engineer, Land & Estate Department (Bhumi & Jindgi Vibhag), Pune Municipal Corporation for taking the possession of amenity space and the application was made by the respondent-assessee to the PMC seeking the completion certificate, is complete in all aspects and no defects were pointed out in the application moved by the respondent-assessee. It is also submitted that the Architect also certified the completion certificate before due date. Thus, it is submitted that the ratio of the Hon'ble Bombay High Court in the case of Hindustan Samuh Awas Limited (supra) is squarely applicable to the facts of the present case. 8. We heard the rival submissions ....
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....undred per cent of the profits derived in the previous year relevant to any assessment year from such housing project if,- (a) such undertaking has commenced or commences development and construction of the housing project on or after the 1st day of October, 1998 and completes such construction,- (i) in a case where a housing project has been approved by the local authority before the 1st day of April, 2004, on or before the 31st day of March, 2008; (ii) in a case where a housing project has been, or, is approved by the local authority on or after the 1st day of April, 2004 but not later than the 31st day of March, 2005, within four years from the end of the financial year in which the housing project is approved by the local authorit....
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....re feet at any other place; (d) the built-up area of the shops and other commercial establishments included in the housing project does not exceed three per cent of the aggregate built-up area of the housing project or five thousand square feet, whichever is higher; (e) not more than one residential unit in the housing project is allotted to any person not being an individual; and (f) in a case where a residential unit in the housing project is allotted to a person being an individual, no other residential unit in such housing project is allotted to any of the following persons, namely:- (i) the individual or the spouse or the minor children of such individual, (ii) the Hindu undivided family in which such individual is the karta,....
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....ate of completion of a project is quite helpful when this provision is utilized in practice. In our view the explanation has introduced an unnecessarily strictness in the provision which is in the nature of exemption and not in the nature of charging. Sub-section (10) mentions that a housing project should be complete before 31.03.2008 so as to get the exemption. Completion of housing project is a physical act. It can be demonstrated on the spot and also through a certificate issued by an architect who is appointed for supervising the construction work. He is a professional who would declare that the project is complete. Unfortunately, Sub-section (10) and the explanation do not give any importance to the issuance of such Completion Certifi....