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2015 (8) TMI 266 - AT - Income TaxEligibility for claiming deduction u/s. 80IB(10) - incomplete housing project - Held that:- In the present case, it is an undisputed fact that the assessee had obtained no objection certificate from the local authority in the year 2007 and has thereafter applied for obtaining completion certificate to the local authority on 02-01-2007. The assessee had already obtained completion certificate in respect of 67 units in the year 31-03-2003 itself. There is nothing on record to show that the residential dwelling units were not completed or not fit for occupation at the time when the assessee made application for issuance of completion certificate. It has also not been refuted by the Revenue that in the year 2007, the Grampanchyat had issued no objection certificate to the assessee for getting individual electricity connection in all the residential units. Thus, we are of the considered opinion that the units were completed in all respect and ready for occupation. As far as the deficiency pointed out by the ld. DR with regard to the drainage and septic tank is concerned we concur with the findings of the Commissioner of Income Tax (Appeals) that construction of soakpit which is required to drain excess water from the septic tank of venial nature. The septic tank has substantial capacity to hold the drainage water and it is only in the case of overflow that the water flows from septic tank to the soakpit. This discrepancy pointed out by the local authority was also removed by the assessee. As far as the objection of the Revenue that against 213 units approved the assessee has constructed only 204 units, we do not find any merit in the same. Four units were not constructed as space was left for 9 mtr. Proposed D P Road and 5 units were left out to make space for construction of septic tank. The non-construction of 9 units, in our considered view will not render 204 completed units in-eligible for the claim of deduction u/s. 80IB(10) of the Act. Thus non obtaining of completion certificate in respect of project approved prior to 01-04-2005 will not render the assessee ineligible for claiming deduction u/s. 80IB(10) in the impugned assessment years. In appeals for assessment years 2005-06 to 2007-08, the Revenue has raised ground with regard to commercial units in the project. Since, the same has not been pressed by the ld. DR. The same are dismissed as not pressed. - Decided in favour of assessee.
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