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2016 (5) TMI 319

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..... ommon area and if it is found that the built-up area of any of the flats is exceeding 1500 sq. feet, then the deduction under section 80IB(10) shall be computed proportionately. The issue with regard to filing of completion certificate for the claim of deduction under section 80IB(10), is covered in favour of the assessee by the decision of Hon’ble Karnataka High Court in the case of Ittina Properties P. Ltd., (2014 (8) TMI 388 - KARNATAKA HIGH COURT ) and therefore, the A.O. shall not insist upon the said certificate for allowing deduction under section 80IB(10) of the Act. - Decided in favour of assessee. - ITA.No.1854/Hyd/2014 - - - Dated:- 24-3-2016 - SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER .....

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..... proved by the local authority. He observed that the project has to be completed by 31.03.2011. He further observed that the assessee has not submitted the completion certificate issued by the local authority. Therefore, the assessee was asked to furnish the same. The assessee vide letter dated 22.03.2013 submitted that the project was completed during the A.Y. 2010-2011 and the flats were all handed- over to the buyers and the assessee has also received the complete sale proceeds which are duly recorded in the books of account. The assessee submitted the completion certificate obtained from M/s. Aslam Architects and Interior Designers P. Ltd., Bangalore wherein it was stated that the construction was completed in all aspects in the F.Y. 200 .....

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..... r the benefit of the said provision. The Revenue contends, the completion certificate issued by the Village Panchayat is not valid and therefore the assessee is not entitled to the said benefit. Admittedly the plan is sanctioned by the BDA. The BDA has not issued any completion certificate. The reason being, in the BDA Act or the Karnataka Municipal Corporation Act, there is no provision for issue of completion certificate. The provision in the Karnataka Municipal Corporation Act is for issuance of occupancy certificate. When the statute does not provide for issue of a completion certificate, if the authorities were insisting on such certificate, the assessee has gone to the Village Panchayat within whose limits the property is situated and .....

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..... s Act, there is any provision for issuance of a completion certificate. There is a provision for sanction of a plan, issue of a license, issue of a commencement certificate and issue of an occupancy certificate. In those circumstances, if the Revenue were to insist on production of a completion certificate, they are asking the assessee to do something which is impossible and which is not proper in law. It is high time the Revenue, keeping in mind the relevant law governing the State of Karnataka, would suitably amend the law or issue appropriate circulars enabling the assessees to comply with the legal requirement so that they could have the benefit extended to them by the Parliament. 3.1. Thus, according to him, where the Karnataka M .....

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..... der section 80IB(10) of the Act. 5. The Ld. Counsel for the assessee, in rebuttal submitted that the decision of the Hon ble Madhya Pradesh High Court is distinguishable on facts whereas, the decision of the Hon ble Karnataka High Court is on the Municipal Corporation Act of the Karnataka and therefore, the same is applicable to the facts of the case before us. As regards the area exceeding 1500 sq. feet in any of the flats, the Ld. Counsel for the assessee, submitted that the A.O. has already considered the same while examining the assessee s claim under section 80IB(10) and is deemed to have occupied the same as no adverse finding has been given in the assessment order. Even otherwise, he submitted that these assessments are made by th .....

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..... ct before the cut-off date. The Hon ble Madhya Pradesh High Court was not considering the case of a local Act wherein there is no provision for issuance of a completion certificate. The facts in the case before the Hon ble Karnataka High Court in the case of Ittina Properties P. Ltd., (cited supra) are similar to the facts of the assessee before us and is applicable to the assessee s case. However, as regards the areas of some of the flats being in excess of 1500 sq. feet in violation of the provisions of section 80IB(10) of the Act, we find that though the A.O. has not disallowed the claim under section 80IB(10) on this ground, this Tribunal being the final fact finding authority, is not precluded from directing the A.O. to verify of the s .....

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