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2016 (2) TMI 600 - ITAT LUCKNOW

2016 (2) TMI 600 - ITAT LUCKNOW - TMI - Entitlement to deduction under section 80IB(10) - Held that:- As in the instant case, no certificate was issued by the Architect. Moreover, the requisite application for issuance of completion certificate was not moved in proper format and along with requisite documents. Therefore, in the light of these facts, it cannot be held that the project was completed within the prescribed period. We, therefore, following the order of the Tribunal for assessment yea .....

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2011. In the absence of any other specific evidence to establish that the project was completed before 31.3.2011, it is not possible for us to hold that the project was completed within the prescribed period, more so in the light of the fact that the completion certificate was issued on 26.9.2011 and also in the light of the judgment of the Hon'ble M.P. High court in the case of CIT vs. Global Reality (2015 (10) TMI 2384 - MADHYA PRADESH HIGH COURT ), according to which the date of issuance of c .....

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V: This appeal is preferred by the assessee against the order of the ld. CIT(A), inter alia, on the following grounds:- 1. BECAUSE the "CIT(A)" has erred in law and on facts in holding that selection of case under Computer Aided Scrutiny System (CASS) was valid in view of the decision of Hon'ble Andhra Pradesh High Court in the case of Andhra Pradesh Beverages Corporation Ltd. vs. Income-tax Officer, Ward-l(l), Hyderabad in writ petition No.3047 & 13542 of 2012. 2. BECAUSE the .....

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e declared as null and void. WITHOUT PREJUDICE TO THE AFORESAID 3. BECAUSE the "CIT(A)" has erred in law and on facts in upholding the disallowance of appellant's claim for exemption under section 80 1B(10) of the Act in relation to the "Residential Housing Project" known as "Fortuna Apartments", on the ground that the same was hit by clause (ii) of explanation thereunder, in as much as completion certificate has been issued by the Lucknow Development Authority .....

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ll before 31.3.2008; b) site plan showing such construction on the 'project site' had duly been submitted before Lucknow Development Authority on 14.3.2008 and by that date even the fee for compounding of some minor 'deviations' had been deposited; and c) after submitting the site plan alongwith application for compounding, a formal application for issuing complete certificate had also been filed on 27.03.2008. the authorities below should have held that the requirement had duly .....

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tion 80IB(10) could not have been denied. 6. BECAUSE completion certificate dated 23.10.2009 as issued by the Executive Engineer, LDA, Lucknow should be held to be related back to 27.3.2008, when the appellant had applied for issuance of completion certificate, after complying with all the requirement of Urban Land (planning and Development) Act 1973 under which LDA is constituted. 7. BECAUSE on similar fact, and after due deliberations on all the aspects of the matter, the appellant's claim .....

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ssment year 2006-07 (in preference to the decision of the Tribunal in the appellant s own case for the assessment years 2005-06 and 2007-08) cannot be said to have been rightly placed, in view of apparent mistakes in the order dated 22.8.2012 (for the assessment year 2006-07), a brief resume of which has been given in Annexure-I hereto. 9. BECAUSE in any case in the event of conflict in "judicial opinion", the view favorable to the assessee should have been followed and accordingly the .....

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era Blues Housing Project" on the grounds that; a) built-up area of some of the flats (24 in number) constructed under the said project had exceeded the limit of 1500 sq. ft. as prescribed in section 80IB(10)(c) of the Act; b) the completion certificate was issued by the local authority i.e. Lucknow Development Authority on 26.09.2011, where as the stipulated period had expired on 31.3.2011; and c) the built-up area of the shops and other commercial establishments included in the said resid .....

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of completion of the "Fortuna Reviera Blues Housing Project" by 31.03.2011 by submitting the application for issuance of completion certificate on 29.03.2011 (well before the cut off date which was 31.03.2011) and merely for the reason that 'issuance' of the said certificate got delayed at the end of Lucknow Development Authority, the appellant's claim for exemption on this second project undertaken by the appellant, cannot be said to be justified. 13. BECAUSE the certific .....

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inst is contrary to the facts, law and principles of natural justice. 2. This appeal came up for hearing on 10.12.2015, but none appeared on behalf of the assessee. However, an application for adjournment was moved on the ground that the counsel for the assessee, Shri. Pradeep Kumar Kapoor, C.A. was preoccupied in the marriage ceremony of his son held on 4.12.2015, therefore, he could not assist properly the senior counsel for preparing the impugned case. The request for adjournment was turned d .....

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adjourned with last opportunity for 14.7.2015. Again on 14.7.2015, the assessee sought adjournment and the hearing was further adjourned with last opportunity for 17.7.2015. Again on 17.7.2015, the hearing was further adjourned at the request of the assessee with final last opportunity for 12.8.2015. Again on 12.8.2015, the hearing was further adjourned at the request of the assessee with final last opportunity for 18.8.2015. Similar is the position on 18.8.2015 and the hearing was adjourned wi .....

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adjournment. When the matter was again listed for hearing on 10.12.2015, assessee moved the present application for adjournment. Keeping in view the non-cooperative attitude of the assessee, we had no option but to hear the appeal ex-parte. Accordingly the Revenue was heard. 4. From a perusal of record, we find that the assessee has filed its written submission and case laws, which were duly examined by us. 5. During the course of hearing of the appeal, the ld. D.R. has invited our attention tha .....

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ngly, the Tribunal has denied the benefit of exemption under section 80IB(10) of the Act. The ld. D.R. has further invited our attention that in the instant case, deduction was claimed on two projects - one is Fortuna Apartment and the other is Fortuna Reviera Blues Apartments . 6. The Fortuna Apartment project was approved before 1.4.2004, therefore, it should have been completed before 31.3.2008. The issue of claim of deduction under section 80IB(10) of the Act on Fortuna Apartment project was .....

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ive years from the end of the financial year, in which the housing project is approved, meaning thereby the project should have been completed by 31.3.2011, but the completion certificate was granted on 26.9.2011. Since this project was also completed after the prescribed period, the assessee is not entitled for deduction under section 80IB(10) of the Act. The ld. D.R. has also argued on the point of excess area, with the submission that the area of 24 flats of the project exceeded 1500 sq. ft. .....

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the assessee can avail the benefit provided completion certificate issued by the Local Authority is within four years from the end of the financial year, in which the concerned project was approved by the Local Authority. If the condition is not fulfilled, the assessee who maintains the work-in-progress accounting method and had claimed deduction under section 80-IB(10)(a) must suffer the consequence of disallowance or withdrawal of the benefit claimed by him on that count 9. Having carefully e .....

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e 1.4.2004, therefore, it should have been completed before 31.3.2008. The claim of deduction under section 80IB(10) of the Act of Fortuna Apartment was raised by the assessee in assessment year 2006-07 also and in that year the Tribunal has examined the issue in detail in the light of other orders of the Tribunal for earlier assessment year and the Tribunal has come to the conclusion that the project was not completed before 31.3.2008, as completion certificate was issued on 23.10.2009. While g .....

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e parties and the material available on record, we find that the Assessing Officer has denied benefit of deduction under section 80IB(10) of the Act for various reasons. In earlier years also benefit of deduction was denied by the Assessing Officer as well as the ld. CIT(A). 12. The first objection for denial of benefit of deduction under section 80IB(10) of the Act was that the housing project was constructed on three different plots. This issue was examined by the Tribunal in earlier assessmen .....

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local authority for the purpose of granting approval and issuing completion certificate of residential housing project. During the course of hearing no dispute was raised by the ld. D.R. with regard to the findings of the Tribunal in earlier assessment years on these two aspects. Therefore, there is no controversy in this regard. 14. The main dispute was raised with regard to the date of completion of the housing project, though this issue was also raised in earlier years and the Tribunal has g .....

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010 and the said completion certificate was issued by the LDA to the assessee on 23.10.2009. The Tribunal has given a finding on the basis of its own assumption of facts that the project was completed before 31.3.2008 during assessment year 2005-06. In the assessment year 2007-08, the Tribunal has simply followed its earlier order for assessment year 2005-06 in the assessee s own case. The order of the Tribunal in assessment year 2007-08 was passed on 15.12.2011 and even during the course of hea .....

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provisions it would be clear that deduction u/s 80IB(10) is available to an eligible assessee who takes the work of developing and building housing project which is approved by the local authority before 31st March 2007 and as per clause (a) to sub section 10 of section 80IB of the Act, such undertaking has to commence the development and construction of the housing project on or after 1st day of October 1998 and complete such construction on or before 31st March 2008. In the instant case, the a .....

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mitted that first approval was taken on 24/11/2001 and thereafter another approval was taken on 03/06/2003. Both these dates are prior to the cut off date i.e. 1st day of April 2005. Therefore, the assessee fulfilled the conditions as laid down in sub clause (i) of clause (a) to sub section 10 of section 80IB of the Act. In the instant case, one of the objections of the Assessing Officer was that there were two different approvals for the housing project. In this regard an explanation has been i .....

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refore, we are of the opinion that the assessee got the approval of the local authority before the cut off date as mentioned in sub clause (i) to clause (a) to sub section 10 of section 80IB of the Act. The another condition which is required to be fulfilled is provided in clause (b) of sub section 10 to section 80IB which relates to the area of land on which the project is constructed. The provisions contained therein specify the area which shall be minimum one acre. In the instant case, the as .....

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han one acre, therefore, the assessee also fulfilled the conditions laid down in clause (b) to sub section 10 of section 80IB of the Act. The provisions contained in section 80IB(10)(b) of the Act do not impose any condition for completion of the project which can be completed in more than one phase but the size of the plot on which project is undertaken must be more than one acre and the project shall be completed before 31st March 2008. In the instant case, housing project of the assessee was .....

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ing the approval before 1st April 2004 and was completed before 31/03/2008, the area of the land on which the housing project was constructed was 4550.07 sq. mtr. i.e. more than one acre. Therefore, the assessee fulfilled the conditions laid down in section 80IB(10) and as we have already pointed out that the audit report as per rule 18 BBB in Form No. 10CCB was furnished during the assessment proceedings i.e. before the completion of the assessment, as such the assessee also fulfilled the condi .....

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in assessee s own case in the absence of completion certificate and has again given a finding that the project was completed before 31.3.2008. The relevant portion of the order of the tribunal is extracted hereunder:- 7.4 The learned CIT(A) has also drawn a parallel and proceeded to hold that this was a project undertaken by the assessee as project of works contract. Such a finding reached by learned CIT(A) is without any cogent reasons and the same is divorced from the approved scheme which wa .....

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claiming deduction under that section and thereafter by a detailed reasoning contained in the said order dated 08/04/2010 and also by recording a finding that the project stands completed prior to the year ended on 31/03/2008, allowed the deduction for the assessment year 2005-2006 as well. No change in facts or law has been reported or brought to our notice by either of the parties. The CBDT by its order No. 4 of 2009 dated 30/06/2009 reported as [2009] 224 CTR (St.) 196 has clarified that in a .....

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In case it is late, found that the condition of completing the project within the specified time limit of 4 years as started in section 80-IB(10) has not been satisfied, the deduction granted to the assessee in the earlier years is should be withdrawn. 7.5 Admittedly the assessment year 2007-2008 is the year in which the project is not shown to have been completed but the profits have been disclosed on partial completion method. In this view of the matter and having regard to the Circular as afo .....

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with regard to the completion of project, it was in the absence of any documentary evidence, rather it was on assumption of certain facts by the Tribunal. But in the instant case, before the ld. CIT(A) completion certificate was filed for the first time and the ld. CIT(A) took cognizance thereof and given a specific finding in the light of Explanation below section 80IB(10)(a) of the Act that date of completion of construction of housing project shall be taken to be date on which the completion .....

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th regard to the date of completion of the housing project requires a fresh adjudication by the Tribunal without being influenced by the earlier orders of the Tribunal, as those orders can be called to be an order per incuriam. 17. We have also examined various judgments referred to by the assessee on the point of rule of consistency and we find that in all those judgments it has been repeatedly held that the principle of res judicata are not applicable in the Income-tax proceedings and every as .....

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d to follow its orders of earlier years. If certain relevant facts are placed on record, the issue requires a proper adjudication in the light of the relevant provisions of the Act. 18. With regard to the date of completion, Explanation was provided below section 80IB(10)(a) of the Act. According to this Explanation, the date of completion of construction of the housing project shall be taken to be the date on which completion certificate in respect of such housing project is issued by the local .....

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g and building housing projects approved before the 31st day of March, [2008] 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,- (i) in a case where a housing project has been approved by the local authority before the 1st .....

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m the end of the financial year in which the housing project is approved by the local authority.] Explanation.-For the purposes of this clause,- (i) in a case where the approval in respect of the housing project is obtained more than once, such housing project shall be deemed to have been approved on the date on which the building plan of such housing project is first approved by the local authority; (ii) the date of completion of construction of the housing project shall be taken to be the date .....

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pproval of the housing project, there is no dispute and admittedly it was granted before 1st April, 2004 by the local authority, but with regard to the date of completion of the project, as per provisions of section 80IB(10) of the Act and its Explanation, it was to be completed before 31.3.2008, but the same was in fact completed only on 23.10.2009. 20. During the course of hearing, our attention as invited to the applications dated 14.3.2008 and 27.3.2008 appearing at pages 23 and 25 of the co .....

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at the assessee has to contact the competent authority on 4.4.2008 for receiving the objections under section 15(3), if any. Thereafter, another application dated 27.3.2008, which is available at page 25 of the compilation of the assessee, was submitted to the LDA. This application was also filed on behalf of a dead person. On perusal of this application, it appears that through this application, completion certificate was sought. Thereafter, completion certificate was granted to Shri Karuna Sha .....

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r was issued. From a careful perusal of this completion certificate, no inference can be drawn from anywhere that the project was completed before 31.3.2008. 21. Where there is no ambiguity in the relevant provisions of the Income-tax Act, there cannot be any question of its construction liberally. In section 80IB(10) of the Act, it has been made emphatically clear that if the housing project is approved before 1st April, 2004 and is completed before 31.3.2008, the assessee would be entitled for .....

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be taken to be the date of issuance of completion certificate by the local authority i.e. 23.10.2009. Since the housing project was completed after 31.3.2008, the assessee has not fulfilled the second requisite condition for claiming deduction under section 80IB(10) of the Act and therefore the assessee is not entitled for deduction under section 80IB(10) of the Act. 10. We have also examined the provisions of section 15 and 15-A of the U.P. Urban Planning and Development Act, 1976 and we find .....

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obtaining completion certificate. The notice in writing of such completion to the Authority is required to be moved in a particular format along with certain requisite documents. But in the instant case, the Tribunal has also examined the applications moved by the assessee to the Local Authority for obtaining this certificate and from a perusal of those documents, the Tribunal has come to the conclusion, on the basis of these documents, that it cannot be presumed that the project was completed w .....

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eds we find that most of the sales were executed in 2004 and in the present case the assessee itself has moved application for completion of the project as observed by the Tribunal in its order in the month of March, 2008. If the contention of the assessee is accepted that the project was completed at the time of sale deed executed in favour of the proposed buyers, then as to why he has moved to the Local Authority for completion of the project in March, 2008. In the light of these facts, the so .....

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date of completion of construction of housing project shall be taken to be the date on which the completion certificate in respect of such housing project is issued by the local authority and their Lordships have categorically held that if the housing project was approved by the local authority before 1.4.2004, he must submit the completion certificate issued by the authority, having issued before 31.3.2008. The relevant observations of the Hon'ble High Court are extracted hereunder for the .....

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mendment to clause (a). According to the amended clause (a), the housing project approved before March 31, 2007 by a local authority would receive the benefit of deduction provided the development and construction of the housing project has commenced or commences on or after October 1, 1998, and is completed within a specified time. Housing projects approved by the local authority before April 1,2004 must be completed before March 31,2008 and the housing project approved on or after April 1, 200 .....

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onsidered as a new condition and that too incapable of compliance inasmuch as clause (a) deals with the time frame within which the housing project was expected to be completed, to get the. benefit of the prescribed deduction. The amended section 80-IB(10)(a) extends the benefit even to housing projects approved by the local authority before March 32,2007, instead of March 31,2005, as was provided in the unamended provision. Therefore, the necessity was felt to make a distinction between the two .....

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the end of the financial year in which the housing project was approved by the local authority. The municipal laws of different States in respect of procedure for issuance of completion certificate are not uniform. To wit, in some States, the dispensation provided is to issue partial or full occupation certificate; and, thereafter, completion certificate after removal of all the deficiencies pointed out by the local authority is issued. In some States, the municipal law may provide for issuing .....

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authority. The Legislature was conscious of this position, for which, express provision has been made as to the meaning of the date of completion of the housing project linked to the "date on which" completion certificate "is issued" by the "local authority", as predicated in Explanation (ii) thereunder. The Supreme Court decisions in the case of Veena Developers and Sarkar Builders will have to be understood only in the context of a new condition stipulated regard .....

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assessment proceedings, the completion certificate was not produced before March 31,2008. Further, a letter was issued by the municipal corporation dated December 18, 2008, pursuant to the enquiry made in that behalf stating that completion certificate had not been issued to the assessee till that date and that the application of the assessee was still being processed. On these facts the Assessing Officer proceeded to complete the assessment proceedings and disallowed the deduction claimed by t .....

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letely different pedestal. It cannot be treated as a new condition linked to the approval and construction or having retrospective effect as such. For, it gives at least four years' time to both classes of housing projects: housing projects approved prior to April 1, 2004 and after April 1, 2004. The four year period obviously has prospective effect, albeit limiting the period for completion of the project, to avail of the benefit. Four years' time for completion of the project, by no st .....

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t. There is no compulsion on him to complete the project in four years. Even the approvals to the construction of housing project granted by the local authority specify the date within which the construction must be completed, as per the time frame specified in the permission. If the project is not completed within the stipulated time, the developer is free to get that period renewed or extended from the local authority as per the applicable Rules and Regulations. The provision for claiming tax .....

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ed in terms of section 80-IB to, the assessee (hundred per cent, of the profits derived in any previous year relevant to>any assessment year) and the purpose underlying it-which is, inter aim, a burden on the public exchequer due to waiver of commensurate revenue-the stipulation fop obtaining completion certificate from the local authority before the cut-off date:, must be construed as mandatory. The fact that compliance with that condition is dependent on the manner in which the proposal is .....

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s a completion certificate issued by the local authority in that behalf. A priori, the argument of substantial compliance is sufficient, would lead to uncertainty about the date of completion of the project which is the hallmark for availing of the benefit of tax deduction. Only with this intent the Legislature in its wisdom has predicated that, "the completion of construction" of the housing project is taken to be "the date on which" the completion certificate "is issue .....

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ed by the local authority in that behalf", irrespective of the date of issuance of such certificate by the local authority. Indeed, in a given case if the assessee is able to substantiate that the completion certificate "was in fact issued" by the local authority before the cut-off date but could not be produced by him within time due to reasons beyond his control, the argument of substantial compliance with the provision can be tested. Any other interpretation would result not on .....

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te from the local authority before the cut-off date, he must take the thereof of denial of the benefit of tax deduction offered to him on that count. (iii) That issuance of completion certificate, after the cut-off date by the local authority but, mentioning the date of 'Completion of project before the cut-off date, does not fulfill the condition specified in clause (a) of section 80-IB(10) read with Explanation (ii) thereunder. Similarly, the requirement of securing the completion certific .....

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his provision can be availed of by the assessee following the work-in-progress accounting method, provided he has complied with the stipulation of having produced the completion certificate issued by the local authority before the cut-off date, as may be applicable in his case. In other words, if the housing project was approved by the local authority before April 1, 2004, he must submit the completion certificate issued by the authority having been issued before March 31, 2008. Whereas, in the .....

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withdrawal of the benefit claimed by him on that count. 14. Our attention was also invited to the judgment of the Hon'ble Bombay High Court in the case of CIT vs. Hindustan Samuch Awas Ltd., 377 ITR 150 on this issue, in which their Lordships have held that the date of completion of the project has to be the date of issue of completion certificate by the Municipal Authorities, but where the Architect of the project has given a certificate prior to 31.3.2008 and the assessee has submitted th .....

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requisite documents. Therefore, in the light of these facts, it cannot be held that the project was completed within the prescribed period. We, therefore, following the order of the Tribunal for assessment year 2006-07, hold that in case of Fortuna Apartment, the assessee is not entitled for deduction under section 80IB(10) of the Act. 15. In the case of Fortuna Reviera Blues Housing Project, the project was approved on 3.6.2005 and it was required to be completed within five years from the end .....

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itect Certificate. Except this letter, no other evidence was filed to establish that the project was in fact completed before 31.3.2011. In the absence of any other specific evidence to establish that the project was completed before 31.3.2011, it is not possible for us to hold that the project was completed within the prescribed period, more so in the light of the fact that the completion certificate was issued on 26.9.2011 and also in the light of the judgment of the Hon'ble M.P. High cour .....

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regard to the selection of this case under CASS. This issue was examined by us in the case of U.P. State Industrial Development Corporation Ltd. (UPSIDC), Kanpur vs. Dy. CIT-6, Kanpur in ITA No.448/LKW/2012, in which it was held as under:- 5. We have considered the rival submissions. We do not find any force in this contention of Learned A.R. of the assessee that if the case is selected for scrutiny with the aid of computer then there is no application of mind by the Assessing Officer as requir .....

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the Act issued after the assessee proclaimed his original return 'as true and correct' is not a valid notice just because it was not issued with reference to a pending return ? (c) Whether on the facts and in the circumstances of the case the learned Income-tax Appellate Tribunal was justified in holding that non-issuance of notice under section 143(2) of the Act has vitiated the assessment order and ignoring that issuance of such notice is a machinery provision and does not go to the r .....

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bank account and passport of the NRI donor even though the identity of the donor could not be established what to talk about proving his creditworthiness and the genuineness of the transaction ?" 5.1.1 In this case, it was held that issuance of notice u/s 143(2) is mandatory and omission on the part of the Assessing Authority to issue notice u/s 143(2) cannot be a procedural irregularity and the same is not curable. In the present case, it is not the case of the assessee that the notice u/ .....

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the order of AAC for assessment year 1960-61 and thereafter, he initiated revision proceedings u/s 33B of Indian Income Tax Act, 1922 relying solely on the order of AAC. It was held in that case that having authorized to file the appeal against the order of AAC for the same assessment year, it cannot be accepted that the CIT was having reasons that the order of the Assessing Officer is erroneous and prejudicial to the interest of the Revenue because if that would have been the case, the CIT cou .....

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Assessing Officer took the help of computer also and therefore, it cannot be said that in the present case, the case of the assessee was selected for scrutiny without application of mind. Therefore, this judgment is also not rendering any help to the assessee. 5.3 The next judgment cited by Learned A.R. of the assessee is the judgment of Hon'ble Apex Court rendered in the case of Sirpur Paper Mill Ltd. (Supra). In that case, it was held that in exercise of power u/s 25 of the Act, the Commi .....

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been raised before the Assessing Officer justifying non selection of the assessee s case for scrutiny and therefore, this judgment is not applicable. 5.4 The next judgment cited by Learned A.R. of the assessee is the judgment of Hon'ble Calcutta High Court rendered in the case Eastern Scales (Pvt.) Ltd. (supra). In that case, the issue in dispute was the rectification order passed by the Assessing Officer u/s 154 of the Act according to the direction of the Addl. CIT and under these facts, i .....

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sessee must be elected for scrutiny and therefore, this judgment is also not applicable in the present case. 5.5 The next judgment cited by Learned A.R. of the assessee is the judgment of Hon'ble Bombay High Court rendered in the case of Gordhandas Desai (supra). In this case, it was held that the Assessing Officer should pass order for rectification ignoring the decision of the Commissioner and the further letters of the CBDT and the Govt. of India which must not influence his determination .....

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judicial proceedings and therefore, all the incidents of such judicial proceedings have to be observed before the result is arrived at. In that case, the assessee asked to inspect the relevant records and documents before leading evidence in rebuttal which was denied and it was held that no such direction can be issued by Board u/s 139(1) which should interfere in the judicial function of the Assessing Officer. In the present case, this is not in dispute that any such direction was issued to Ass .....

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cision of Hon'ble Apex Court that if the power exercised by the Collector was a quasi judicial power, as has been held by Apex Court, that power cannot be controlled by the directions issued by the Board. It was also held that no authority however high placed can control the decision of a judicial or a quasi judicial authority. In the present case, the facts are different. In the present case, this is not the case of the assessee that any superior authority has controlled the action of the A .....

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n order judicially has to act independently. In the present case, this is not the case of the assessee that the Assessing Officer has not acted independently and therefore, in our considered opinion, this judgment is also not rendering any help to the assessee in the present case. 6. As per the above discussion, we have seen that none of the judgments is rendering any help to the assessee. We have also seen that the case was selected for scrutiny by Assessing Officer although he had taken help o .....

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aken by the tax administration/Government although much work is still to be done in this regard. Some of these steps are that it is made a rule that tax returns can be filed in a paper less manner in order to improve voluntary compliance by the tax payer and also to reduce the burden of filing voluminous documents along with the tax return. This is a big relief to the tax payer but this has to be ensured that there are some deterring measures so that no undue advantage is taken by any tax payer .....

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from adopting the habit of tax evasion/avoidance, it was decided that there should be scrutiny in a small number of cases. Since the returns filed are paper less, some system has to be devised for selecting the case for scrutiny. When the return is filed without any paper, certain guidelines have to be formed for selecting some cases for scrutiny as deterring measure. These guidelines may be such that the person having income above a prescribed limit will be scrutinized in larger percentage comp .....

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in such guideline and in this process, if the Assessing Officer is taking help of computer in analyzing data disclosed by the tax payer in the return of income then it cannot be said that the decision for selecting the case for scrutiny is not independent decision of the Assessing Officer. This is not the case of the assessee that there is any specific direction of any higher authority to select the case of this particular assessee for scrutiny. The guideline may be this as to what should be pe .....

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