TMI Blog2015 (6) TMI 358X X X X Extracts X X X X X X X X Extracts X X X X ..... HIGH COURT] though the certificate issued by the Zonal Commissioner is to be considered as proper. - Decided in favour of assesse. - ITA Nos.1652 & 1653/Hyd/2014 - - - Dated:- 11-3-2015 - Shri P.M. Jagtap And Smt.Asha Vijayaraghavan JJ. For the Appellant : Shri Rajat Mitra, DR For the Respondent : Shri K.C. Devdas, CA ORDER Per Smt. Asha Vijayaraghavan, J.M. These two appeals are filed by the Revenue against the common order of the CIT (A)-III, Hyderabad, dated 25th August, 2014, passed for A.Ys 2010-11 2011-12. Since common issues are involved in these appeals, they were heard together and disposed off with this common order, for the sake of convenience. 2. Brief facts are, assessee is a firm deriving income from construction of residential flats. Assessee filed return of income for A.Ys 2010-11 on 15.10.2010 declaring total income of ₹ 16,30,020 and for A.Y 2011-12 on 30.09.211 determining total income at ₹ 15,23,350. AO completed the assessment on 28.03.2013 for A.Y 2010-11 and on 18.02.2014 for A.Y 2011-12 u/s 143(3) determining total income at ₹ 2,17,15,740 and ₹ 85,62,700 respectively. 3. The ld CIT (A) allowed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessee. The profit admitted is 30% for the sales of ₹ 6,42,65,250 which is ₹ 1,92,79,575 when we dedujct the total expenditure incurred is only ₹ 3,83,80,629 relating to sales. The details of construction expenditure year-wise are as under: A.Y Amount of expenses (Rs.) 2004-05 1,33,05,906 2005-06 3,50,46,385 2006-07 6,02,08,607 2007-08 12,29,43,792 2008-09 10,91,44,432 2009-10 5,13,83,769 2010-11 3,83,80,629 When the total expenditure is ₹ 43,04,13,520, the expenditure relating to this year is only ₹ 3,83,80,629. As far as the expenditure relating to water pipeline, the amount paid amount to ₹ 58,13,100 for water works department. Whether the assessee was going round the department to lay water pipe the assessee was going round the department to lay water pipe works it took 3 to 4 years to get water connection. Mea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of getting approval from the local authority is applicable. As per provisions of section 80IB(10) Incometax Act, 1961 an undertaking which develops and builds housing projects approved before 31.3.2007 by a local authority is eligible for deduction u/s. 80IB(10) of the Act subject to the following conditions: i) In a case where the housing project has been approved by the Local Authority before 01-04-2004, the construction should be completed on or before 31- 03-2008. In a case where the approval from Local Authority is obtained on or after 01-04-2004, the construction should be completed within 4 years from the end of the financial year in which the housing project is approved by the Local Authority. ii) The housing project is constructed on a plot of land which has a minimum area of 1 acre. iii) The residential units constructed in the housing project have a maximum built up area of 1500 sq. ft. where such units are situated in places other than Delhi or Mumbai. iv) The built-up area of shops and other commercial establishments included in the housing projects does not exceed 5% of the aggregate built-up area of the housing project or 2000 sq. ft., whichever is less. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 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 housing project, if the undertaking had commenced development and construction of the housing project on or after 1st October, 1998. Thus, till 2005, there was no clause dealing with completion, in which event, one cannot read into the provision as a condition, which is not specifically provided for therein. 10. As far as the present case is concerned, it relates to the assessment year 2004-05. The substitution of Explanation to clause (a) to sub-section (10) of Section 80IB of the Income Tax Act was brought in under Finance No.(2) Act of 2004, effective from 01.04.2005. Thus, in the absence of any such requirement read into the Section, we find it difficult to accept the case of the Revenue that the claim for deduction has to be rejected on the ground that theassessee had not furnished the completion certificate. Leaving that aside, as is evident from the reading of the Commissioner's order, in any event, th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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