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2014 (9) TMI 122 - AT - Income TaxDeduction u/s 80IB(10) – Profits arising from construction of buildings – Held that:- The completion certificate was applied for before 31-3-2008 i.e. on 12-3-2008 - the application of the assessee has been approved by the local authority without raising any amendment or objection, as has been asserted by the assessee all along and the delayed issuance of the completion certificate by the local authority on 5-5-2008, albeit after the mandated date of 31- 3-2008 cannot be attributed to the assessee - the assessee has complied with the condition of completing the construction of the project within the mandated date of 31-3-2008 even with regard to building 'E' - the order of the CIT(A) denying the benefit of deduction u/s.80IB(10) for non-receipt of completion certificate is set-aside – Decided in favour of Assessee. Deduction u/s 80IB(10) - Building Nos. B and F not constructed – Held that:- The buildings A, C, D, E and the 17 row houses are constructed on a plot area of more than 1 acre, none of the flats/row houses is beyond 1500 sq.ft. and the completion thereof has been over before 31-03-2008 – relying upon M/s. Rahul construction Co. Vs. ITO [2012 (6) TMI 319 - ITAT PUNE] - whatever portion completed by the assessee which satisfies the conditions prescribed u/s.80IB(10) is eligible for deduction - the assessee is eligible for deduction u/s.80IB(10) in respect of building No. A,C,D, E and the 17 row houses – Decided in favour of assessee. Once it has been held that the assessee is entitled to claim deduction u/s.80IB(10) of the Act with regard to buildings 'A to F' which were completed before prescribed limit of time and complied all conditions laid down under the provisions of section 80IB(10) of the Act - The assessee's claim for deduction will not be effected even if the assessee has not constructed buildings G & I because the assessee claim u/s.80IB(10) of the Act is justified in respect of Buildings 'A to F' on standalone basis. The buildings J & H were retained by partners of the assessee and no question of claim u/s.80IB(10) of the Act arises - The claim of the assessee in respect of building cannot be denied in respect of buildings 'A to F' irrespective of the fact that area of buildings / Bungalows J & H exceeded 1500 sq. ft. in respect to which, no claim has been made - the assessee is entitled for deduction u/s 80IB(10) of the Act in respect of profits arising from construction of buildings 'A to F' for A.Y. 2006-07 which constituted separate independent project – Decided in favour of assessee. Comparability of profitability between different projects – Held that:- It was only in this assessment year that the gross profit rate appears to be much different, but it has been explained by various factors by the assessee - The indirect expenses which have been allocated in the Shivanand Garden Project is now reduced - The reallocation, which results in a reduction in expenditure in the Shivanand Garden Project, has resulted in enhancement of the profit – thus, the addition in respect of the profits of the Shivanand Garden Project is sustained and the remaining was deleted – Decided against Revenue.
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