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2016 (11) TMI 967 - HC - Income TaxGrant of deduction under section 80-IA(4) - Held that:- MARS Planning and Engineering Services Pvt. Ltd. was appointed by GIDC for the purpose of certifying the quality control and completion of the project for State subsidy. MARS Planning and Engineering Services Pvt. Ltd. had already given such completion certificate well before March 31, 2011, on the basis of which the State Level Committee had approved the petitioner for grant of subsidy, which was also granted along with completion certificate. There was thus voluminous evidence on record to suggest that the project was completed before March 31, 2011. However, we do appreciate the anxiety of the Central Board of Direct Taxes that such task should normally not be part of its responsibility. It is in this regard that completion certificate should be provided by a local authority. In strict sense of the term, perhaps the petitioner did not fulfil this requirement. However, a more liberal or practical approach could be that when MARS Planning and Engineering Services Pvt. Ltd. was appointed by GIDC who had certified that the project was completed before March 31, 2011 and when the State Government had acted on such report and approved the subsidy, this should have been seen as a substantial compliance of such requirement. However, to put the issue beyond any controversy, we permit the petitioner to produce such certificate from GIDC, which is also a local authority, before the Central Board of Direct Taxes which may be done latest by September 30, 2016. If such certificate providing that the project of the petitioner is completed before March 31, 2011, is issued, the Central Board of Direct Taxes shall approve the petitioner for grant of deduction under section 80-IA(4) of the Act and issue necessary notification in this respect, within three months from the date of receipt of such certificate.
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