Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (5) TMI 51 - AT - Income TaxReopening of assessment - Disallowance u/s. 80-IB(10) - housing project was approved and commenced prior to 1998, therefore, not eligible for claim of deduction - Held that:- After considering the remand report sent by the AO, the CIT(A) has recorded a finding to the effect that on plot CTS No.261, 261/1 & 2, 263 various buildings were to be constructed and that assessee had constructed/developed building No.4 only. Even during the original assessment proceedings and appellate proceedings and also during the second appeal, it has been gathered that the assessee very well informed that he had constructed housing project namely building No.4 only. The copies 01 Municipality letter dtd.12.11.2000 addressed to its Consultants Shri Manoj Paresh, Municipality letter dtd.12.11.2001 addressed to its Consultants, Municipality intimation of disapproval dtd.7.11.2000, commencement certificate dtd.25.01.2001 with reference to assessee's application no. 3501 dtd.29.09.2000 shows that the subject matter was Building No.4 of CTS No. 261, 261/1 & 2, 263. The A.O. received commencement certificate dtd.19.06.1998, occupancy certificate on 29.10.2001 and other documents from the CIB Branch. However, all these documents were pertaining to Building No.3 on the aforesaid plot. The said building no.3 was never constructed by the assessee. Thus, we found that even reopening of assessment was not based on correct reasoning insofar as building No.4 constructed by the assessee was after receipt of approval letter from the municipality dated 25-1-2001 with reference to application No.3501, dated 29-9-2000. Thus, there was no reason to believe that there was any escapement of income with respect to building No.4. As per materials placed on record, we found that assessee was a developer of housing project as a whole and not merely a contractor, insofar as entire development was to be undertaken as per the approval given by municipal authority for development of entire housing project with basic service like sewerage, electricity etc. Thus, assessee is not adversely affected by the explanation inserted by Finance (No.2) Act, 2009, w.e.f.1.4.2001 below section 80IB(10). All the preconditions for availing benefit of section 80IB(10) had been complied with. The detailed finding recorded by the CIT(A) at para 3 of his appellate order are as per material on record. Accordingly, we do not find any reason to interfere in the findings recorded by the CIT(A) for allowing claim of deduction in respect of housing project at building No.4 undertaken by the assessee. Before parting with the matter, it is pertinent to mention that assessee’s claim for deduction u/s.80IB(10) in the first round has also been allowed by the CIT(A), ITAT and Hon’ble Bombay High Court - Decided in favour of assessee
|