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TMI Blog2013 (1) TMI 599X X X X Extracts X X X X X X X X Extracts X X X X ..... eriod. The Assessing Officer further observed that as per the above certificate all the occupants had applied for regularization of their plans and the same were got regularized on 31/08/2009. He observed that even this fact indicated that the date of actual completion of the project in all aspects was 31/08/2009 i.e. the date on which even certain apparent aberrations to the sanctioned plan were effected to the builder. 3. On appeal, before the CIT(A) the AR of the assessee submitted that the assessee had taken for development and construction a residential project on a two acre land. It was further submitted that Approval for construction of 155 dwelling units on a built up area of 1,77,415 had been accorded by the HUDA vide its letter ref. No. 6381/P4/H/2003, dt. 26/06/2004. It was contended that the built up area of each residential unit is less than 1500 sq.ft. and the necessary approvals with the building plans, were also submitted. 4. The AR of the assessee further submitted that it had completed the construction of all the residential units within stipulated period by 15/09/2008 in all respects and had applied to the GHMC for issuance of a completion certificate. The asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n preceding paragraphs, no infirmity can be found in the denial of the claim of deduction u/s 80IB(1). Accordingly, the grounds raised in this appeal are decided against the appellant." 7. Aggrieved by the order of the CIT(A), the assessee is in appeal before us. 8. Before us, The learned counsel for the assessee submitted that the construction of the project was completed with the stipulated period i.e. before 31/03/2009 itself and the licensed architect and structural consultant have confirmed the same vide their certificates dated 15/09/2006 and these certificates also were filed before the CIT(A). It is submitted that the assessee vide the letter fild on 19/03/2008 before the Zonal Commissioner, West Zone GHMC requested for the issue of the completion certificate and the Zonal Commissioner vide his letter dated 23/03/2009, stated that the application of the assessee would be processed only after the matter concerning BPS regulations pending before the High Court of AP is disposed of by the High Court. Nevertheless, the Zonal Commissioner has, in the said letter, observed that for almost all the apartments/flats the property tax assessments were completed. It is further submit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allowance of deduction if the assessee obtains a certificate of completion from the local authority to the effect that the construction is completed within 4 years. The format of the "certificate" to be obtained is not prescribed under the I.T. Act or the rules made there under. It was submitted that when the Act does not contain a definition one has to go by the common parlance meaning. In 313 ITR 262 = (2008-TIOL-751-HC-MAD-IT), it has been held that "In taxing statute particularly, it is not the dictionary meaning which has to be seen but the meaning as understood in common parlance in commercial circles". In these circumstances the letter dt.23.3.09 issued by the Zonal Commissioner acknowledging the fact that the Apartments/Flats are already completed confirms to the requirement of obtaining the certificate and satisfies the condition u/s.80IB(10)(A) of I.T.Act. Further, the assessee's counsel pointed out that the Zonal Commissioner has categorically stated that the necessary certificate could not be issued as the matter relating to BPS regulations was pending before the High Court. However, the completion certificate was issued by the Zonal Commissioner, GHMC on 30th November ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt authority even on a subsequent date would revert back to the date on which the application is made and the project should accordingly be deemed to have been completed as mentioned in the application and consequently the assessee should be held to have complied with the provisions of Sec.80IB(10)(a)(ii). 12. The Learned Counsel for the assessee also relied on the decision of ITAT Pune Bench in the case of Satish Bora & Associates (ITA No.713 & 714/PN/2010) dt.7.1.2011. 13. The learned DR on the other hand relied upon the orders of the authorities below. 14. We have heard both the parties and perused the record as well as gone through the orders of the authorities below. In the present case the assessee obtained approval from Municipal Authorities for construction of the project on 26/06/2004 and thus the construction needs to be completed by 31/03/2009. As per the provisions of u/s 80IB(1)(a) Explanation (ii), the date of completion of construction should be taken as the date on which such completion certificate was issued by the said local authority. In the present case, the assessee has furnished the completion certificate from the Commissioner, Greater Hyderabad Municipal C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ertificates issued by the GHMC themselves do not mention any date of completion of the assessee's project. Hence, the CIT(A) opined that on the basis reference of letter of Shri D. Putraiah, it cannot be concluded that the GHMC has certified that the construction had been completed on 15/09/2008. 20. Relevant dates for deciding the issue are the due date for completion of the project is 31.3.2009; Structural Engineer certified that the project is completed on 15.9.2008 i.e. six months prior to the due date; however, the GHMC authorities issued completion certificate on 31.11.2009 i.e. 14 months after submission of completion certificate by the Structural Engineer i.e. Shri Putriah. Therefore, the case of the assessee is that above delay of 14 months is not attributable to the assessee and he cannot be expected to do the impossible. In this regard, we have examined the cited Pune Bench decision in the case of Satish Bora (supra). The said decision set a legal principle under the provision of relevant Municipal Laws, where there is no concept of completion certificate but only the occupancy certificate. It also contains the provisions for deemed issue of completion certificate if Mu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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