TMI Blog2012 (11) TMI 588X X X X Extracts X X X X X X X X Extracts X X X X ..... g by the provision, as it stood during relevant assessment year, 2004-05, it is difficult to accept the contention of the Revenue that the claim for deduction rested on the assessee's production of completion certificates - appeal filed by the Revenue is rejected. - Tax Case (Appeal) No.759 of 2010 - - - Dated:- 2-11-2012 - MRS. CHITRA VENKATARAMAN AND MR. K. RAVICHANDRABAABU JJ. For Appellant : Mr. T. Ravi Kumar Standing Counsel for Income Tax For Respondent : Mr. R. Sivaraman JUDGMENT (Judgment of the Court was delivered by CHITRA VENKATARAMAN, J.) This Tax Case (Appeal), filed by the Revenue as against the order of the Tribunal relating to the assessment year 2004-05, was admitted on the following substantial questi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f income. Since the assessee had stated that there was no claim on the project, the Assessing Officer was directed to verify the details of the flats constructed on this project, whether the contentions were in conformity with the claim made in the return and in compliance with the provisions of Section 80IB of the Income Tax Act. 4. As far as the projects at Velachery, Chitlapakkam and Virugambakkam are concerned, the assessee pointed out that it had obtained completion certificates signed by the Local Authority. The Commissioner directed the Assessing Officer to verify the certificates and grant the relief in accordance with law. 5. As regards the projects at Manapakkam and Pallavaram, the Commissioner pointed out that the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er Section 263 of the Income Tax Act. However, pointing out to the insertion of Explanation in Finance No.(2) Act of 2004, effective from 1.4.2005, and prior to this amendment, there was no obligation on the part of the assessee to file completion certificate, in so far as the non-furnishing of the completion certificate was concerned, there could be no error found in the order of assessment. Consequently, while upholding the order of the Commissioner of Income Tax in respect of the project Jains Prakriti at Bangalore, whereby the Commissioner directed the Assessing Officer to find out the extent of the built-up area of the flats exceeding 1500 sq.ft., the Tribunal accepted the contention of the assessee as regards the furnishing of compl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d and five hundred square feet at any other place." 8. Section 80IB(10) was amended with effect from 01.04.2005, which reads as under: "Deduction in respect of profits and gains from certain industrial undertakings other than infrastructure development undertakings 80IB(10) The amount of deduction in the case of an undertaking developing and building housing projects approved before the 31st day of March, 2007 by a local authority shall be hundred per cent of the profits derived in the previous year relevant to any assessment year from such housing project if, - (a) such undertaking has commenced or commences development and construction of the housing project on or after the 1st day of October, 1998 and completes such construction, - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re 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 one thousand and five hundred square feet at any other place; and (d) the built-up area of the shops and other commercial establishments included in the housing project does not exceed five per cent of the aggregate built-up area of the housing project or two thousand square feet, whichever is less." 9. As is evident from the substitution of Section 80IB(10) (1) of the Act, prior to the amendment, there was no such requirement as regards furnishing of completion certificate and the deduction provision pointed out to the grant of 100% deduction on the profits derived from a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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