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2017 (3) TMI 1329 - AT - Income TaxDisallowance u/s 80IB(10) - lack of completion certificate - AO noted that the appellant firm has allotted more than one unit to an individual and his spouse which is violated to section 80IB(10)(f) - Held that:- As regards the evidences in support of completion of the project in time the assessee has submitted evidences from the Gram Panchayat. The Gram Panchayat has been accepted as competent authority in several case laws including that from Hon’ble jurisdictional High Court. As examined the evidences submitted by the assessee regarding the completion of the project find that the evidences duly established that the project has been duly completed for the deduction being claimed. Hence find that adverse inference drawn on account of lack of completion certificate cannot be sustained. Another adverse inference has been drawn on account of allotment of one flat to spouse of existing allottee. In this regard it is the contention of the learned counsel of the assessee that the said provision is not applicable in the case of the assessee inasmuch as the concerned provision was not applicable. Further more learned counsel has contended that the payments for the said flats were duly received prior to the applicability of the concerned provision. Alternatively learned counsel of the assessee has placed reliance upon the decision of Hon’ble High Courts where it has been held that in all fairness the claim of the assessee with regard to proportionate relief has to be read into the provisions so that deduction provisions are sustained and denial of the entire claim on the basis of some units which had not complied with the conditions is not justified. Direct the AO to examine the contentions of the assessee and if required, disallow the exemption qua the sale of flat which is attracted by the concerned provisions. - Decided in favour of assessee for statistical purposes.
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