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2017 (3) TMI 1307 - AT - Income TaxBenefit of deduction u/s. 80IB(10) - assessee could not furnish occupancy/completion certificate from the competent authority before the due date i.e. 31-03-2012 - Held that:- It is an undisputed fact that the assessee received commencement certificate from PMC in respect of its housing project on 27-07-2006. However, till that time permission for use of land for nonagriculture purpose was not received from the Collector. As per the provisions of section 42 of Maharashtra Land Revenue Code, 1966 the land used for agricultural purpose cannot be used for any nonagricultural purpose unless permission is granted by the Collector. Under such circumstances even if the housing project of the assessee is approved by the PMC, the assessee could not have started construction of the project unless NA permission is received from the Collector. In the present case, since, the permission from Collector was received subsequent to the issuance of commencement certificate by PMC, the later date shall be deemed to be the date of approval of project and accordingly the period of 5 years for completion of project as envisaged u/s. 80IB(10)(a)(iii) shall be computed from the date NA permission is granted. Accordingly, for claiming deduction u/s. 80IB(10) the due date of completion of assessee’s housing project is 31-03-2013. Thus, in view of our above findings ground raised in the appeal by the Department is dismissed. The housing project of the assessee was approved for total 128 flats. 72 flats in Building A (Wings A and B) and 56 flats in Building B (Wings C and D). Architect under whose supervision housing project is constructed, had certified that 36 flats in Wing A and equal numbers of flats in Wing B including lower and upper parking are complete. Thus, it is evident that the assessee had applied for issuance of occupancy certificate in respect of 72 flats of Building A, well before the due date. The PMC granted partial occupancy letter in respect of 40 flats, i.e. 26 flats in Wing A and 14 flats in Wing B on 27-07-2012. Again vide communication dated 27-12-2013 the PMC granted occupancy letter in respect of 19 flats, i.e. 3 flats in Wing A and 16 flats in Wing B. Thus, out of 128 flats, the assessee received completion/occupancy certificate in respect of 115 flats. The final occupancy certificate in respect of 13 flats was withheld by the PMC for non-handing over of amenity space. There is no document on record to show that occupancy/completion certificate was not issued by the PMC on account of incomplete flats. The assessee had applied for grant of completion/occupancy certificate in respect of entire 128 flats well before due date. Delay caused in issuance of completion/occupancy certificate by PMC cannot be attributed to the assessee. - Decided against revenue
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