Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (11) TMI 202 - AT - Income TaxDeduction u/s. 80IB(10) - Held that:- If a portion of the plot area was earmarked for roads after the assessee entered into development agreement and the plan was duly sanctioned by the competent authority - we cannot find fault with the assessee to deny the deduction u/s. 80IB(10) of the Act - Accordingly, we are of the opinion that the area of the plot available to the assessee for housing project is more than 1 acre - Accordingly, the claim of the assessee cannot be denied on this ground if it was available at the time of entering into development agreement and deduction u/s. 80IB(10) was to be given to the assessee. As per provisions of section 80IB(10) of the Act, the housing project should be on the size of a plot of minimum one acre. If the building project was sanctioned by the Municipal Corporation for developing the project in the area of one acre land or more, the assessee is entitled for deduction u/s. 80IB(10) of the Act. Non-production of Completion Certificate - The Assessing Officer was directed to consider the claim of the assessee - The project was approved by the Municipal Corporation of Hyderabad - As per certificate of assessee's architect the project was completed - The learned AR submitted before us that the assessee has completed the project by this date and the assessee is following contract completion method - The claim for deduction u/s. 80IB(10) was made by the assessee for the first time which was denied by the authorities on the reason that there was no completion certificate. The meaning of “date of completion” has been given in Explanation (ii) to clause (a) to section 80IB(10) - Date of completion of construction 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 was mandatory to furnish the completion certificate of the housing project - The year of the assessment of income and connected deduction shall fall in the same assessment year - If the Revenue was taxing the profit in the year under consideration on the ground that the assessee was adopting "Percentage Completion Method" then the natural corollary should be that the connected deduction ought to be granted simultaneously in this year or the other method of computation is that the Revenue must not tax the profit of the project yearly on the basis of "Percentage Completion Method" but tax the entire profit on completion of the project by applying "Project Completion Method - Decided in favour of Assessee.
|