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TMI Blog2013 (3) TMI 675X X X X Extracts X X X X X X X X Extracts X X X X ..... cer has erred on facts and in law in not allowing a pro-rata claim u/s. 80IB(10) with reference to the completed portion of the project which independently on a standalone basis satisfies the conditions laid out u/s.80IB(10)of the Income Tax Act, 1961. The facts which revealed from the record are as under. 2. The assessee is a partnership firm engaged in construction business and undertake development of the Housing Projects. The assessee declared net profit of Rs. 2,33,89,879/- in the A.Y. 2007-08 and the entire profit has been claimed as exempt u/s.80IB(10) of the Incometax Act, 1961. The Assessing Officer asked for the details in respect of the Housing Project on which the assessee has claimed the deduction u/s.80IB(10) of the Act. As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... B, C, D, & E (P+3) and since the completion certificate is certifying completion of only 4 buildings out of 5 buildings mentioned in revised plan sanction dated 30-03-2007 referred in completion certificate it is very much evident that all the five buildings are referred by the local authority under one commencement certificate and hence, the Assessing Officer has observed that the assessee has to complete building 'E' also in order to be eligible for deduction u/s.80IB(10). The Assessing Officer finally concluded that the assessee has failed to complete the Housing Project as such on or before 31-03- 2008 as the building plan of which was first approved by the local authority on 22-12-2003 and the revised plan sanctioned 30-03-2007. 3.1 H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of the assessee and by giving the following reasons he has confirmed the action of the Assessing Officer denying deduction to the assessee u/s.80IB(10) at entirety. "I have considered the submissions of the appellant and material available on record. The first commencement certificate/Building Plan approval for the appellant's project was received on 22.12.2003, and therefore the date of completion in accordance with the provisions of section 80IB(10)(a)(i) of the IT. Act, should be on or before 31.03.2008. However, by this date out of the buildings A to E, building 'E' was not complete, and completion certificate was received only for buildings A to D. The contention that building 'E' was added by the revised appro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing date of completion of the project. Accordingly, the claim of deduction u/s 80IB(10) of the Act, is held to be rightly disallowed by the A.O., since the specific condition given u/s 80IB(10)(a)(i) was not satisfied. Ground no. 1 of appeal is, therefore, dismissed." Now the assessee is in appeal before us. 6. We have heard the rival submissions of the parties and perused the record. The learned counsel argues that there is no dispute in this case that the assessee was bound to complete the Housing Project on or before 31-03-2010 but that was only in respect of 4 buildings A, B, C, and D. He submits that as per the revised plan sanctioned on 30-03- 2007, one more building E was added but in the original sanctioned layout there were only ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nation refers to layout plan and not building plan to explain Housing Project. He pleaded for confirming the Ld.CIT(A). 7. The core issue for adjudication before us is whether building 'E' is a separate Housing Project or it is a part of the Housing Project originally sanctioned vide order dated 15-09-2003. The original plan filed but the assessee comprises of 4 buildings A, B, C, and D as per the documents on record. We find that building 'E' is added in the plan which got approved vide Commencement Certificate dated 30-03-2007. It is also seen that from the first sanction/approval of the project plan, the assessee kept applying for the revision. Admittedly up to 30-03-2007 Building E was not in the lay out but it is separately added. We ..... X X X X Extracts X X X X X X X X Extracts X X X X
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