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2021 (8) TMI 462 - AT - Income TaxDisallowance of deduction u/s 80IB(10)(a) - Revenue contended that, assessee had not fulfilled the condition required u/s 80IB(10) as per which the assessee had to obtain the Project Completion Certificate from the prescribed authority within a period of 5 years from the end of the financial year in which the project was first approved i.e. on or before 31.03.2012, and the same was applied for on 29.08.2012 and obtained on 21.12.2013 - HELD THAT:- Registration of the units in the name of the ultimate customers is being registered by the GDA who is also the competent authority to issue the Completion Certificate in the case of the assessee. GDA has clearly mentioned that the project was completed on 21.02.2011 vide the aforementioned letter therefore it establishes the fact that the project was in fact completed much before the cutoff date of 31.03.2012. It is also a fact that this letter dated 21.02.2013 is not a formal completion certificate issued by the GDA. This letter mentions the date of completion as 21.02.2011. The date of this letter has been erroneously taken by AO as the completion date. Further in respect of the observations of the AO that assessee has not applied for completion certificate in time it is seen from the documents available on record that the assessee has applied for the project completion certificate with the authority vide its letter dated 30.11.2011 after duly completing the work on 21.02.2011. The apartments would be registered only when the project completion certificate is obtained by the assessee. Since, the prescribed authority has accepted the project completion on 21.02.2011 therefore first registry of the project was done by the authority in favor of ultimate buyer' s on 21.02.2011. During the Financial Year 2010 - 11, 5 of the units got registered in favor of the customers of the NEO project by the assessee company and another 291 units in Financial Year 2011-12 out of total units of 346 i.e. the majority of the units i.e. around 86% of the total units got registered in the names of ultimate customers before the end of financial year 2011-12 which is also the cutoff date for getting the project completion certificate. As well established that the project of the assessee was completed before the cutoff date as per the provisions by the Act i.e. 31.03. 2012. The AO has chosen to ignore all these facts and made the addition on the basis of interpretation of statute by holding that the date of completion is 21.12.2013 i.e. the date of letter of Joint Secretary, GDA ignoring the fact that this letter is not a completion certificate issued by the GDA. This letter itself mentions the date of completion as 21.02.2011. This date of letter has been erroneously taken by AO as ' the completion date. AO held that since this letter is dated 21.12.2013, the completion of the project is beyond the prescribed period u/ s 80-IB and not from the date mentioned in the letter i.e. 21.02.2011. As the action of the revenue is incorrect on the facts of completion certificate, we decline to interfere with the order of the ld. CIT(A). - Decided against revenue.
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