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2017 (8) TMI 1249 - AT - Income TaxReopening of assessment - Deduction under section 80 IB(10) denial - date of seeking approval or permission for development from the local authority - as per the Assessing Officer the date of 05/05/1999 is incorrect for the reason that the development permission given by CIDCO is dated 04/06/1998, which is before 01/10/1998 therefore, assessee is ineligible for the benefit of section 80IB(10) - Held that:- The date of seeking approval or permission for development from the local authority is of no relevance to decide about the correctness or incorrectness of the date of commencement of the project, which has been taken at the time of original assessment as 05/05/1999. Even if the date of approval is before 01/10/1998, it does not disentitle the assessee because the requirement of the section is that the eligible housing project has to be approved before 31/03/2007. The significance of 01/10/1998 is to examine the date of commencement of development and construction of the housing project, and in the present case it has been canvassed at 05/05/1999. The reasons recorded reflect that the Assessing Officer has confused the date of approval by the local authority with the date of commencement of development and construction of the housing project which are two different aspects. In any case, merely because the permission was given by CIDCO on 04/06/1998 cannot, by itself, be a basis to entertain a belief that the date of commencement of project adopted in the original assessment proceedings as 05/05/1999 is incorrect. In our considered opinion, there is no information or material referred by the Assessing Officer in the reasons recorded which can, even on prima-facie basis, establish that the date of commencement of development and construction of the project taken as 05/05/1999 is incorrect. Therefore, in this context it has to be factually inferred that there was no material with the Assessing Officer form a valid belief that income had escaped assessment on account of incorrect allowance of deduction under section 80IB(10) of the Act. - Decided in favour of assessee.
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