2016 (10) TMI 1031

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..... challenges the concurrent orders of the Commissioner of Income Tax (Appeals) and the Income Tax Appellate Tribunal holding that the respondent assessee was eligible for deduction under Section 80IB (10) of the Income Tax Act, 1961. The respondent assessee is dealing in real estate and develops housing projects. For the assessment year 200910, the assessee had computed the net profit at Rs. 37,79,941/and had claimed deduction under Section 80IB (10) of the Act. Similarly, for the assessment year 201011, the net profit computed by the assessee was Rs. 1,60,61,384/and deduction under Section 80IB(10) of the Act was claimed at Rs. 1,55,03,286/. An enquiry was conducted in the claim of the assessee for deduction. The assessee produced the relev .....

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..... d Counsel for the parties and on a perusal of the orders of the Income Tax Appellate Tribunal and the Commissioner of Income Tax (Appeals), it appears that a clear finding of fact is recorded by both the Authorities that the Gram Panchayat - Local Authority had granted the sanction for construction and development of more than one acre of plot and separate permissions were not granted by the Gram Panchayat for construction and development in favour of the Vendors owners, from whom the assessee had purchased the plots, before securing the permission from the Local Authority, as required, for claiming deduction under Section 80IB (10) of the Act. Both the Authorities have recorded a finding that the assessee had satisfied the Authorities that .....

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..... e Revenue that there was no permission from the Local Authority for the development of one acre of plot and separate permissions were secured for construction of houses of individual plot owners. Also, in those appeals it was the case of the Revenue that the housing project was not completed within the time prescribed under Section 80IB(10) of the Act. Such is not the case here. In the present matters, both the Authorities have concurrently recorded a finding of fact that the development of the housing project was completed within the time prescribed under Section 80IB(10) of the Act. In the admitted appeals, though it was sought to be canvassed on behalf of the Revenue that Gram Panchayat, Besa was not the 'local authority', a substan .....

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