Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (12) TMI 1123 - AT - Income TaxRevision u/s 263 - deduction under section 80IB(10) allowed by AO erroneously - Gram Panchayat Aadai of District Raigad competency for purpose of issuing approval and completion certificate for claiming deduction - Held that:- During the assessment proceeding, the AO issued notice under section 142(1) wherein he made the enquiry related with the project undertaken by the assessee with regard to area of project, date of approval of project from local authority, date of commencement, date of completion of the project and if the project is covered under section 80IB(10). The AO also made the enquiry related to size of residential unit, commercial area in project, nature of land holding, commencement certificate from appropriate authority under whose jurisdiction work was carried out along with copy of plan and revised plan, proof of land holding and total proposed construction along with return of income filed for AY 2011-12 and 2013-14 with balance-sheet, computation of income and Auditor’s report. The assessee in its reply furnished the information related with total area of the project which is 5940 sq. meter i.e. 1.5 Acres (approximately), date of approval of the project on 29.03.2007 and date of completion of project dated 05.03.2012. The assessee provided the details of built-up area, copy of land purchase agreements, commencement and completion certificate along with copy of plan, return of income for AY 2011-12 and 2012-13 and Auditor’s report. The AO after considering the reply and the documentary evidence furnished by assessee allowed the claim of assessee under section 80IB in the assessment order passed on 30.03.2015. The AO granted the deduction under section 80IB(10). In our view, the AO has made a sufficient enquiry before passing the assessment order. Co-ordinate Bench of Pune Tribunal in Hiraman Nivrutti Bhujbal vs. ITO [2014 (5) TMI 1137 - ITAT PUNE] held that concerned Gram Panchayat is a competent local authority for the purpose of issuing approval and completion certificate for claiming deduction under section 80IB(10) in respect of the profit from sale and eligible flats in the project. In our view, the AO has taken a legally possible view while allowing deduction under section 80IB(10). In our view, the provision of section 263 of the Act can be invoked if the twin condition prescribed under section 263 is fulfilled i.e the order is erroneous and prejudicial to the interest of Revenue. In the present case, the AO has taken legally permissible and possible view, thus, the order passed by AO is not erroneous. - Decided in favour of assessee.
|