TMI Blog2016 (3) TMI 210X X X X Extracts X X X X X X X X Extracts X X X X ..... um/2012 - - - Dated:- 29-1-2016 - SHRI C.N. PRASAD, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER For The Revenue : Shri Love Kumar For the Assesee : Shri Ajay R Singh PER C.N. PRASAD, JM: These are appeal by the Revenue and the Cross objection by the assessee preferred against the order of the Ld. CIT(A)-30 Mumbai dated 09.05.2011 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 commence ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9. According to the AO, deduction u/s. 80IB(10)(a) is allowable if such undertaking is commenced or commences development and construction 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 12.11.1997 and the assessee applied for commencement certificate of the residential project on 13.5.1999 and the commenc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 after 1.10.1998. Since the commencement certificate according to the AO was issued prior to 1.10.1998, the assessee is not entitled for deduction u/s. 80IB(10) of the Act. The Ld. CIT(A) 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 agre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... il 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 work. This being so, the appellant made application on 13.5.1999 and accordingly it was issued CC dated 5.8.1999 in its own name. Thus the CC was issued to 2 different entities i.e. Sunil Builders and the appellant and hence it is not correct to apply explanation (1) to section 80IB(10). The development work started only after the CC dated 5.8.1999 was issued in the name of the appellant. The facts of the case cited by the appellant of Sarkar Developers are to my mind on weaker footings compared to the case of the appellant. In the case of Sarkar Developers, both the certificates were i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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