New User   Login      
Tax Management India .com TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2016 (3) TMI 210 - ITAT MUMBAI

2016 (3) TMI 210 - ITAT MUMBAI - TMI - Denial of deduction u/s. 80IB(10) by reopening the assessment u/s. 147 - Held that:- The commencement certificate issued on 13.11.1996 in the name of Sunil Builders got expired on 12.11.1997 and the assessee on entering into development agreement with Sunil Builders applied for commencement certificate on 13.5.1999 and got certificate dated 5.8.1999 and the project was commenced by the assessee pursuant to the certificate dated 5.8.1999 and since the projec .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

.2011 pertaining to assessment year 2003-04. Since this appeal and the cross objection were heard together, they are disposed of by this common order for the sake of convenience and brevity. 2. The Revenue has raised the following grounds of appeal: 1. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in treating that the project had commenced after 1.10.1998 without appreciating the fact that the AO had brought out sufficient material on record to conclude t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

. The original return was filed by the assessee on 1.11.2004 declaring Nil income after claiming deduction u/s. 80IB(10) of the Act . Assessment u/s. 143(3) was completed on 28.3.2006 accepting the Nil income shown by the assessee after allowing deduction claimed u/s. 80IB(10) of the Act. Later on notice u/s. 148 was issued and the reassessment was completed u/s. 143(3) r.w. Sec. 147 of the Act completed on 24.12.2007 determining the income of the assessee at ₹ 29,36,955/- by withdrawing t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ruction of the housing project on or after 1.10.1998 and since the commencement certificate has been issued on 13.11.1996 i.e. prior to 1.10.1998, the AO was of the view that the assessee is not entitled for deduction u/s. 80IB(10) of the Act. 3.1. On appeal, the Ld. CIT(A) while upholding the validity of reopening allowed the claim of deduction u/s. 80IB(10) to the assessee holding that the commencement certificate which was issued on 13.11.1996 in the name of Sunil Builders got expired on 12.1 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ntitled for deduction u/s. 80IB(10) of the Act. 4. Aggrieved by this, the Revenue is in appeal before us. 5. The Ld. Departmental Representative vehemently supported the order of the AO in denying the assessee deduction u/s. 80IB(10) of the Act. 6. The Ld. Counsel for the assessee strongly supported the order of the Ld. CIT(A). He invited our attention to page 53 to 55 of the Paper Book and submits that the original commencement certificate was issued in the name of Sunil Builders on 13.11.1996 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ed 8.8.1999 and the entire construction of the project was commenced in pursuance of the said certificate. Therefore, it is submitted that the project was commenced after 1.10.1998 and the assessee is entitled for deduction u/s. 80IB(10) of the Act. 7. Heard the rival contentions, perused the materials placed before us. The AO denied deduction u/s. 80IB(10) by reopening the assessment u/s. 147 of the Act for the reason that deduction u/s. 80IB(10) is allowable when the project is commenced on or .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e assessee pursuant to the certificate dated 5.8.1999 and since the project was commenced after 1.10.1998, assessee is entitled for deduction u/s. 80IB(10) of the Act. While holding so, the Ld. CIT(A) observed as under: The appellant on the other hand has contended that the commencement certificate (CC) dated 13.11.1996 issued in the name of Sunil Builders got expired on 12.11.1997 since Sunil Builders did not carry any development work. The appellant made an application to BMC on 13.5.1999 and .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

not lead to the conclusion that development activity has commenced. The AR. of the appellant also submitted that in subsequent years, the assessment has been framed u/s.143(3) and that findings have been given that the appellant has satisfied all the conditions u/s.80IB(1) of the I.T.Act. The CC dated 13.11.1996 was issued in the name of Sunil Builders which got expired on 12.11.1997. However, the CC dated 13.11.1996 was issued in the name of Sunil Builders who did not carry out any development .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

to the case of the appellant. In the case of Sarkar Developers, both the certificates were in the name of the same assessee whereas in the case of the appellant, the CC elated 13.11.1996 is in the name of Sunil Builders and the CC dated 5.8.1999 is in the name of the appellant. However, the other facts of Sarkar Builders are quite similar to the facts of the appellant in as much as the CC was expired in both the cases and a fresh CC was obtained which is after 1.10.1998. The Hon. Tribunal in th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version