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2014 (7) TMI 1366 - ITAT PUNEDeduction u/s 80IB - project undertaken by the assessee was a mixed project of piece-meal sanctions - Whether residual project of development and construction undertaken by assessee complied with the requirements of section 80IB(10)? - assessee pointed out that obtaining of multiple building sanctions, does not result in the project being ineligible for section 80IB(10) benefits - CIT-A allowed the deduction - HELD THAT:- As some of the plots initially comprised in the layout were sold as such would not defeat assessee’s entitlement for deduction u/s 80IB(10) of the Act so long as the conditions stipulated in section 80IB(10) of the Act are satisfied qua the residual project undertaken by the assessee. Factually speaking, it is not in dispute that the profit/loss resulting on account of sale of certain plots as such has not entered assessee’s claim of deduction u/s 80IB(10) of the Act. Therefore, in our view, the CIT(A) made no mistake in rejecting the aforesaid stand of the Assessing Officer and proceeding to examine whether the residual project of development and construction undertaken by assessee complied with the requirements of section 80IB(10). On obtaining of multiple building sanctions, in our view, the same cannot be held against the assessee. As clarified that the housing project shall be deemed to have been approved on the date of which the building plan of such housing project is first approved by the local authority. Therefore, to say that because assessee had obtained multiple approvals and thus is disentitled for section 80IB(10) benefits, is against the legislative mandate. Hence, existence of multiple building plan approvals cannot be held against the assessee. Furthermore, the requirement that the project is to be on a size of a plot of land of a minimum area of one acre is concerned, the same has also to be examined not with respect to each and every individual building plan approval but with respect to the housing project as a whole. Thus, in the present case, the Assessing Officer erred in considering the size of individual plots of land to examine as to whether it has area of one acre or more. On this aspect also, we find that the CIT(A) made no mistake in disregarding the objection of the Assessing Officer. Period specified for complying the construction of the project - As evident that with regard to the development of the housing project undertaken by the assessee, last of the completion certificate is dated 31.03.2011. The claim of the Assessing Officer is that a completion certificate has also been issued by the local authority on 02.09.2011, which is the last certificate. Even if the said certificate is taken into consideration, yet it does not breach the outer limit of 31.03.2012 which is stipulated date in the present case for completion of project, as seen earlier. However, the claim of the assessee and which has been upheld by the CIT(A) is that the said completion certificate pertains to construction on a plot, which was undertaken by the purchaser himself. Assessee explained that the said plot was sold as such and the purchaser obtained the building sanction and the assessee had no role to play in the development and construction of the said plot. The aforesaid factual finding is not controverted by the Revenue before us. Accordingly, the stand of the CIT(A) on this aspect is also hereby affirmed. As a result of the aforesaid discussion, we find that on all the aspects raised by the Assessing Officer, the CIT(A) made no mistake in upholding assessee’s plea for the claim of deduction u/s 80IB(10) of the Act with respect to its housing project, ‘Flora City’ undertaken at Talegaon Dabhade, Pune. Thus, the order of the CIT(A) is hereby affirmed. - Decided in favour of assessee.
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