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2014 (9) TMI 1145 - AT - Income TaxDisallowance of deduction u/s 801B(10) - Gram Panchayat as competent authority for issuing completion certificate - project was not approved by Local Authority i.e. CIDCO as housing project but as residential building in shop line as there was no provision for commercial area in housing project prior to 01/04/2004 - Held that:- In the present case the project was approved for commencement vide letter of CIDCO dated 05/03/2004. Thus, the project was approved for commencement before 31/3/2005 and old law will apply when it was not a condition precedent to submit completion certificate. Deduction u/s. 80 IB (10) cannot be denied to the assessee for want of completion certificate from CIDCO. In common parlance “housing project” would mean constructing the building or group of buildings consisting of several residential units. In fact the explanation in section 80 IB(10) supports the contention of the assessee that approval granted to housing project. Therefore, it is clear that construction of even one building with several residential units of size not exceeding 1000 sq.fts. “E” Building in that case would constitute a housing project under section 10 IB(10) of the Act. Project constructed by the assessee was a separate project different from the project carried out by M/s. Sai Leela Developers. Therefore, such passing observations of AO cannot be held to be a ground for rejection of assessee’s claim for deduction under section 80 IB (10) of the Act. For the aforementioned reasons we set aside the order passed by Ld. CIT(A) and hold that assessee is entitled to get deduction under section 80 IB(10) and accordingly the AO is directed to allow the deduction to the assessee under section 80 IB(10). Ground No.1 to 5 are allowed in the manner aforesaid.
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