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2015 (10) TMI 2631 - AT - Income TaxDisallowance of deduction u/s 80IB(10) - no approval from the local authority for the housing project seeked - whether the Gram Panchayat is “local authority” or not - Held that:- There was a discussion of Bombay Village Panchayat Act, 1958 and as per section 52, sanction of construction of building within the limit of village has to be granted by the Panchayat. On the said basis it was held that the village Panchayat is a “local authority”. As far as the issue whether the Gram Panchayat is “local authority” or not, the decision of ITAT, Pune Bench has been cited before us n the case of Hiraman Nivrutti Bhujal [2014 (5) TMI 1137 - ITAT PUNE] wherein other decisions were discussed and finally came to the conclusion that the concerned Gram Panchayat was a competent local authority for the purpose of issuing approval and completion certificate for claiming deduction u/s 80IB(10) of I.T. Act. Moreover, the respondent-assessee has also placed reliance on a decision of CIT vs. Gwalior Rayon Silk Manufacturing Co. Ltd. [1992 (4) TMI 3 - SUPREME Court ] for the legal proposition that the provisions for deductions and exemptions should be construed reasonably and in favour of the assessee. In our considered opinion since all the issues in hand have been covered either by the orders of the Tribunal in assessee’s own case or by respected coordinate Benches, therefore, we find no fallacy in the view taken by the learned CIT(Appeals). - Decided against revenue
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