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2014 (2) TMI 595 - ITAT PUNESurvey u/s 133A of the Act - Eligibility of the project to deduction u/s.80IB(10) of the Act – Effect of amendment – Requirement of completion of the housing project - Held that:- The assessee obtained the permission for construction of buildings A, B, C, D, E, F and 17 row houses on 12-12-2001 - The assessee constructed building Nos. A,C, D and E and the 17 row houses and dropped the idea of construction of Building Nos. B and F being uneconomical and had not submitted any revised plan to PMC - the assessee applied for completion certificate on 22-01-2004, the same was not received by the assessee before 31-03- 2008. Completion certificate from PMC – Held that:- The decision in City Development Corporation Vs. ACIT [2013 (7) TMI 198 - ITAT PUNE] followed - The completion certificate was applied for before 31-3- 2008 i.e. on 12-3-2008 - denial of deduction u/s 80-IB(10) on such score is uncalled for – thus, the assessee has complied with the condition of completing the construction of the project within the mandated date of 31-3- 2008 even with regard to building 'E' - since the assessee has done whatever possible on his part, i.e. duly applied to PMC for issue of completion certificate, handed over possession of the flats/row houses to the respective buyers, PMC has started levying municipal taxes and electricity bills paid by respective owners – thus, the deduction u/s.80IB(10) cannot be denied to the assessee for non-receipt of completion certificate from PMC before 31-03-2008 which was beyond the control of the assessee – thus, the order of the CIT(A) denying benefit of deduction u/s.80IB(10) for non-receipt of completion certificate is set-aside and the grounds raised by the assessee on this issue are allowed. The decision in M/s. Rahul construction Co. Vs. ITO [2012 (6) TMI 319 - ITAT PUNE] followed - The approval of the housing project and approval of building plan are two different concepts – the housing project does not necessarily have to be various group of buildings constructed on that particular land, but it can also be a particular building or any building which is part of a large project - whatever portion of the housing project is otherwise found to be eligible has to be considered as a housing project for the purpose of deduction u/s. 80 IB (10) of the Act - the use of the words “residential units” in cl.(c) of s.80IB(10) means that deduction should be computed unit-wise – Thus, if a particular unit satisfies the condition of s.80IB, the assessee is entitled for deduction and it should be denied in respect of those units only which do not satisfy the conditions - whatever portion completed by the assessee which satisfies the conditions prescribed u/s.80IB(10) is eligible for deduction – thus, the assessee is eligible for deduction u/s 80IB(10) in respect of building No. A,C,D, E and the 17 row houses – Decided partly in favour of Assessee.
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