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2023 (2) TMI 688 - AT - Income TaxDeduction u/s 80IB(10) - cut of date for claiming deduction u/s 80IB(10) - deduction derived from the business of execution of housing project under the provisions of section 80IB(10) - HELD THAT:- The object behind enactment of provisions of section 80IB(10) is to provide 100% of deduction of profits derived by undertaking for development of building and housing project. In the present case, assessee sought the approval of building plan, housing project and land admeasuring 25,340 sq.mtrs. to construct 8 buildings and the said approval was granted on 29.03.2007. The housing project was required to be completed on or before 31.03.2012 in order to avail the benefit of deduction u/s 80IB(10) of the Act. However, in the present case, admittedly, the position of the building A was totally incomplete as on 31.03.2012 and the buildings B, C & D were completed partly upto floor no.9, 10 & 11 respectively, which clearly indicates that the housing project of buildings A, B, C and D were not completed upto 31.03.2012. As carefully gone through the order of CIT(A) and find that the CIT(A) had ignored the fact that the buildings B, C & D were not completed as on 31.03.2012, which is the cut of date for claiming deduction u/s 80IB(10) - It is beyond anybody imagination as to how the Municipal Authority had issued completion certificate in respect of buildings B, C & D even without knowing the fact that the construction was not completed as on 31.03.2012. No provision under the Municipal Corporation Act of Maharashtra Government was shown to us, which empowers the local authorities to issue completion certificate even without completion of construction of the entire building. CIT(A) had grossly fell in error in allowing the deduction in respect of buildings B, C & D overlooking the plain provisions of the Act and without examining case in detail. Eligibility of deduction in respect of buildings E, F, G & H - We are unable to discern that the ld. CIT(A) had satisfied himself that the respondent-assessee had fulfilled the necessary conditions precedent for availing the deduction u/s 80IB(10) of the Act. Therefore, we are of the considered opinion that the order of the ld. CIT(A) suffers from voice of perversity and it is bereft of factual discussion on facts of the case and also failed to construe the provisions of relevant section in accordance with settled legal principles discussed above. Ordinarily, we would have remanded the matter back to the file of the Assessing Officer to examine the allowability of deduction u/s 80IB(10) in respect of buildings E, F, G & H, but even before us the respondent-assessee had not led any material on record before us satisfying the conditions precedent for availing benefit u/s 80IB(10) in respect of buildings B, C & D, therefore, keeping in view the well settled principle, that remand cannot be made in order to improve case of either party to the litigation. Accordingly, we decline to do so. Thus, the grounds of appeal filed by the Revenue stand allowed.
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