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2018 (1) TMI 196 - HC - Income TaxDeduction u/s 80IA (5) and 80IB (10) - clearly established that the constructions of the projects started before 1.10.1998 - Held that:- Where the assessee undertakes levelling work so as to develop the land to facilitate the construction of a building over it, the development and construction of the housing project commences with such levelling of the earth. Therefore when the expression used is "Commences Development and Construction of the Housing Project" the intention of the legislature is clear that the development of the project and the construction which follows such development must start on or before the date specified even if either the development or the construction starts before the specified date, the benefit under the aforesaid provisions would not be admissible. The evidence on record may prove that the foundation laying ceremony of the projects may have been performed on 30.9.1998 and actual construction may have started later on but the levelling of the earth in the project had started much earlier. Thus, with the levelling of the earth, the development and construction of the project had commenced which was prior to 1st October 1998. In view of the fact that the development and construction of the housing project are integral to each other and as the filling or levelling of the earth of the projects which is part of development had commenced prior to 1.10.1998, it would be deemed that the development and construction had commenced prior to 1.10.1998. Thus, the respondent assessee failed to satisfy the third condition for grant of benefit under Section 80 IA (4F) read with Section 80 IA (5) and 80 IB (10) of the Act. Accordingly, the tribunal was not justified in granting the benefit of Section 80 IA (4F) read with Section 80 IA (5) and 80 IB (10) of the Act. - Decided in favour of revenue
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