TMI Blog2011 (8) TMI 722X X X X Extracts X X X X X X X X Extracts X X X X ..... to the respective customers by registering a sale deed and thereafter the assessee constructed the building on agreed price, therefore, the assessee acted as building contractor and not as a developer. Hence, all the four conditions laid down in the clauses (a), (b), (c) and (d) of sub-sec. (10) of 80IB were not fulfilled. Decided against the Assessee. - IT APPEAL NO. 255 (INDORE) OF 2010 - - - Dated:- 17-8-2011 - JOGINDER SINGH, R.C. SHARMA, JJ. Arun Jain for the Appellant. Arun Dewan for the Respondent. ORDER Joginder Singh, Judicial Member This appeal is by the assessees against the order of the learned CIT(A)-I, Bhopal, dated 2.2.2010 on the ground that in the facts and in the circumstances of the case, ld. fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nil income in its return filed on 23.10.2006 after claiming deduction of Rs. 10,50,530/-, u/s 80IB(10) of the I.T. Act. However, the Assessing Officer noted that the assessee sold the plots of land to the customers by registering the sale deeds, consequently, such customers became absolute owners of such plots and thereafter the assessee acted as contractor only, consequently, he disallowed the deduction claimed u/s 80IB(10) of the Act. The assessment order was carried in appeal before the ld. CIT(A), wherein, the assessment order was affirmed which is under challenge before this Tribunal. Admittedly, the project was to be completed before 31.3.2008 and till date, no completion certificate has been issued to the assessee. In view of these ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ued by the local authority; (b) the project is on the size of a plot of land which has a minimum area of one acre: Provided that nothing contained in clause (a) or clause (b) shall apply to a housing project carried out in accordance with a scheme framed by the Central Government or a State Government for reconstruction or redevelopment of existing buildings in areas declared to be slum areas under any law for the time being in force and such scheme is notified by the Board in this behalf; (c) the residential unit has a maximum built-up area of one thousand square feet where such residential unit is situated within the city of Delhi or Mumbai or within twenty-five kilometres from the municipal limits of these cities and on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es that the date of issue of completion certificate, by the local authority, shall be the date of completion of the project. However, as admitted by the Ld. Counsel for assessee and also in view of the letter dated 15.12.2008, issued to the ld. Assessing Officer, no certificate was issued to the assessee, therefore, it can be clearly inferred that the assessee is not eligible for deduction u/s 80IB(10) of the Act. So far as the reliance of the Ld. Counsel for assessee in the case of D.K. Construction v. ITO (IT Appeal No.243/Ind/2010, dated 6-12-2010) passed by the Indore Bench, is concerned, firstly, we find that in this case, the completion certificate was issued to the assessee clearly mentioning the date of the project but in the presen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... language employed in statute is the determinative factor of legislative intent. Our view is fortified by the decision from Hon'ble Apex Court in the case of Prakash Nath Khanna v. CIT [2004] 266 ITR 1/135 Taxman 327 (SC). Amendment/substitution was made by the Finance (No.2) Act 2004 w.e.f. 1.4.2005. Prior to its substitution sub-sec. (10) as amended by the Finance Act 2000, w.e.f. 1.4.2001 and Finance Act 2003 with retrospective effect from 1.4.2002, read as under: "(10) The amount of profits in case of an undertaking developing and building housing projects approved before the 31st day of March, 2005 by a local authority, shall be hundred per cent of the profits derived in any previous year relevant to any assessment year from such hou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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