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2020 (9) TMI 293 - KARNATAKA HIGH COURTEligibility for deduction u/s 80IB(10) - large scale violations and deviations to the sanctioned plan of the local authority by the assessee firm in carrying out the “Housing Project” - Whether the appellate authorities were correct in construing that deviations and violations committed by the assessee while undertaking the housing project and yet to be paid compounding fee for regularizing the default is fairly enough to claim the deduction under Section 80IB(10)? - ITAT allowed the deduction as confirmed by CIT- A stating that authorities of the BBMP inspected the building for issue of occupancy certificate and it was observed that there was a deviation in construction with reference to the modified building plan, which is well within the permissible limit of regularization as per the revised Master Plan 2015 with levy of compounding fee which was accordingly paid HELD THAT:- Findings of fact are based on meticulous appreciation of evidence on record. The Bangalore Development Authority Act, Karnataka Municipal Corporation Act and Karnataka Municipalities Act do not contain any provision to obtain completion certificate and therefore, it was not necessary for the assessee to obtain any completion certificate in the absence of any provisions in the aforesaid Acts. From the findings recorded by the Commissioner of Income Tax (Appeals) as well as the Tribunal, it is evident that the project undertaken by the assessee was approved by the local authority and therefore, it had complied with the conditions mentioned in Section 80IB(10)(a) of the Act. - Decided in favour of assessee.
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