Contact us   Feedback   Annual Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2016 (5) TMI 319 - ITAT HYDERABAD

2016 (5) TMI 319 - ITAT HYDERABAD - TMI - Disallowance of deduction u/s 80IB(10) - non filing of completion certificate for the claim - Held that:- The Hon’ble Delhi High Court in the case of CIT vs. Jansampark Advertising and Marketing P. Ltd. [2015 (3) TMI 410 - DELHI HIGH COURT] held that the Tribunal being the final fact finding authority, is under an obligation to direct the A.O. to make proper enquiries if the discrepancies and facts are brought to its notice. In view of the same, we deem .....

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 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 For The Assessee : Mr. S. Rama Rao For The Revenue : Mr. M. Sitaram ORDER PER SMT. .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

07.10.2010 declaring income of ₹ 9,24,627. In the computation of total income, the assessee had claimed deduction of ₹ 1,51,12,561 under section 80IB(10) of the Act. During the assessment proceedings under section 143(3) of the I.T. Act, the assessee submitted a note stating that the firm has undertaken construction of a residential complex at Hubli, Bangalore and that the assessee is satisfying all the conditions as per section 80IB(10). The A.O. examined the development agreement .....

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 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 Arc .....

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 site inspection and ensuring that all formalities are complied with. The A.O. was however, was not satisfied with the assessee s contention and observed that the assessee has to furnish the completion certificate issued by the local authorities for claiming deduction under section 80IB(10) of the Act. He therefore, disallowed the claim of deduction under section 80IB(10) and brought it to tax. Aggrieved, assessee preferred an appeal before the Ld. CIT(A) who confirmed the order of the A.O. a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ctioned subsequent to the Act. The point of controversy is regarding the date on which the project was completed to be eligible for 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, 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

uld satisfy the requirement of law need not be gone into in these proceedings because, when the statute does not provide for issue of such a certificate, if the Revenue insists on such certificate, the assessee would be left with no option except to get such certificate with some authority which would be called as a local authority. In the facts of this case, we are of the view that the Tribunal has recorded a finding that the building was completed within the stipulated period and therefore de .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

exemption from payment of Income Tax to a builder who undertakes group housing activity, the department is not willing to extend the benefit on the pretext that the production of completion certificate is a condition precedent for extending the benefit. Neither under the BDA Act nor under the Karnataka Municipal Corporation Act nor under the Karnataka Municipalities Act, there is any provision for issuance of a completion certificate. There is a provision for sanction of a plan, issue of a lice .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ey could have the benefit extended to them by the Parliament. 3.1. Thus, according to him, where the Karnataka Municipal Corporation Act does not provide for issuance of a completion certificate, the assessee could not have furnished the completion certificate as assessee cannot be asked to perform an impossible act. The Ld. Counsel further submitted that the assessee has furnished the municipal property assessments by the municipal authorities which goes to prove that the project was completed .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

various states, the Hon ble Madhya Pradesh High Court has held that the requirement of securing completion certificate issued by the local authority before the cut-off date is not directory but is mandatory and that the completion certificate granted by the local authority must bear the date of having been issued before the cut-off date. The Ld. D.R. further submitted that from the property assessment furnished by the assessee before the A.O., it is noticed that some of the properties have an ar .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ng 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 the municipal authorities on the basis of the claims made by the individual owners and these areas may have included the common area which is not .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s been completed within the time specified under the Act. In the case before us, the undisputed facts are that the project is at Hubli, Karnataka. Under the Karnataka Municipal Corporation Act, there is no provision for issuance of completion certificate to any of the assessees. The Hon ble Karnataka High Court has taken note of this provision in the case of Ittine Properties P. Ltd., (cited supra), and has held that the assessee cannot be called upon to perform an impossible act. In the case of .....

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