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2013 (8) TMI 74 - AT - Income TaxDeduction u/s. 80IB(10) disallowed - contention of the assessee that the assessee commenced its business by 10.3.2006 and in order to claim deduction u/s. 80IB(10) the project was completed by 31.3.2011 relevant to the assessment year 2011-12 i.e. within 5 years from the end of the financial year and for which completion certificate was received on 20.9.2011. Further it was stated that though the assessee was following block-wise completion contract method of accounting. Held that:- The meaning of "date of completion" as given in section 80IB(10)(a) (ii) would mean date on which completion certificate in respect of housing project was issued by the local authority. To grant deduction u/s. 80IB(10) it is mandatory to furnish the completion certificate of the housing project but stipulation for obtaining completion certificate should not be so interpreted to mean that an assessee can claim exemption u/s. 80IB(10) only in the year of completion of whole of the housing project, even where the project stretches over a number of years and assessee returns its income based on percentage completion method. It would only mean that the assessee has to obtain such certificate on completion of the housing project, least it would lose the deduction already granted u/s. 80IB(10) for the earlier years if it is not so produced. As held in the case of Bajaj Tempo vs. CIT (1992 (4) TMI 4 - SUPREME Court) a provision in the taxing statutes granting incentives for promoting growth and development of the nation should be construed liberally. Further section 80IB(10)(a) only specified how to reckon the day of approval and date of completion. It would not mean that the assessee can have the benefit of section 80IB(10) only in the year of completion of the project, especially so, for an assessee not following project completion method for accounting its income. Of course if such period exceeded the prescribed limit, Revenue would be well within its rights to withdraw the claims already allowed, following the procedure prescribed under the Act. Thus, AO need not insist on the completion certificate in this assessment year, this is the right meaning of the statute. This view has also been taken by CBDT in its Instruction No. 4 of 2009 dt. 30.6.2009 As for the assessment year 2010-11, the assessee's claim u/s. 80IB(10) was granted on the basis of completion certificate issued by the GHMC, Circle-12, West Zone, Hyderabad vide letter dated 20.11.2011 showing that the project is completed within 5 years from the date of commencing of the project. When the Department accepted the same certificate in the A.Y. 2010-11, there is no reason to doubt the same certificate in the A.Y. 2009-10 to deny the deduction u/s. 80IB(10). See Kura Homes (P.) Ltd. Versus ITO [2012 (11) TMI 466 - ITAT HYDERABAD] - appeal of the assessee is allowed.
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