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2014 (6) TMI 709 - AT - Income TaxDeduction u/s 80IB of the Act Requirement to file completion certificate Held that:- The housing project for which deduction is claimed by the assessee u/s 80IB(10) was approved by the competent authority in the year 1999 - the assessee has claimed that the housing project was complete in all respect during the FY 2005-06 relevant to the AY 2006-07 - Relying upon CIT Vs. CHD Developers Ltd. [2014 (1) TMI 1542 - DELHI HIGH COURT] -for a housing project which is approved by the competent authority prior to 01/04/2005 there is no requirement under the un amended provision u/s 80IB(10) to furnish a completion certificate from the local authority because law requiring furnishing of such completion certificate was brought into the statute only with effect from 01/04/2005 and would apply prospectively - the assessee is following percentage of completion method the assessee cannot be expected to furnish a completion certificate in each year of continuation of the project, but, only on completion of the project. Assessee is not required to furnish completion certificate in terms with Explanation - (ii) to clause (a) of section 80IB(10) - the AO cannot insist upon the assessee to furnish the completion certificate from the local authority for allowing claim of deduction u/s 80IB(10) of the Act - the assessee is able to prove that the housing project is complete in all respects within the prescribed period as provided u/s 80IB(10) and the assessee has fulfilled all other preconditions of the provision then the assessee will be entitled to claim deduction u/s 80IB(10) of the Act - the AO has disallowed deduction u/s 80IB(10) only for the reason that assessee has not furnished completion certificate from the local authority - all other conditions of section 80IB(10) are fulfilled by the assessee except the fact of completion of housing project - if the assessee will be able to prove completion of housing project within stipulated time by providing any other evidence, then claim of deduction u/s 80IB(10) cannot be denied to the assessee thus, the AO is directed to verify the completion of the project without insisting upon a completion certificate from the local authority and thereafter decide the issue accordingly after affording reasonable opportunity of being heard to the assessee in the matter Decided against Revenue.
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