TMI Blog2017 (6) TMI 1031X X X X Extracts X X X X X X X X Extracts X X X X ..... re to be setaside to the file of AO for fresh examination so that all relevant facts and documents are brought on record to determine the actual date of completion of blocks A to G - ITA No. 597/JP/16, ITA No. 598/JP/16 - - - Dated:- 10-2-2017 - Shri Kul Bharat, JM And Shri Vikram Singh Yadav, AM Assessee by : Shri Anil Kumar Nuhal (CA) Revenue by : Smt. Pratima Kaushik (CIT) ORDER Per Shri Vikram Singh Yadav, A. M. These are two appeals filed by the Revenue against two separate orders of ld. CIT (A)-I, Jaipur dated 30.03.2016 for A.Y. 2011-12 and A.Y. 2012-13 respectively. In these appeals, the Revenue has taken following grounds of appeal: In ITA No. 597/JP/16 A.Y. 2011-12: (1) Whether on the facts and in the circumstances of the case and in law the ld. CIT(A) has erred in deleting the addition of ₹ 3,96,42,786/- made on a/c of disallowance of deduction claimed 80-IB(10) of the Act. In ITA No. 598/JP/16 A.Y. 2012-13: (1) Whether on the facts and in the circumstances of the case and in law the ld. CIT(A) has erred in deleting the addition of ₹ 2,96,80,114/- made on a/c of disallowance of deduction claimed 80-IB(10) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0) of the Act. Similar findings has been given by the ld. CIT(A) for A.Y. 20012-13. 2.3 This Bench vide its order dated 24.01.2017 has recently examined the matter at length in respect of eligibility of the assessee company to claim deduction u/s 80IB(10) of the Act in respect of the same housing project namely Guru Shikhar for AY 2009-10 and AY 2010-11. The operative part of our findings is reproduced as under: (8) There is no dispute as to the fact that assessee has complied with the conditions stated in sub clause (b), (c) (d). The dispute remains only with reference to the conditions stated is sub clause (a), (e) (f). In present case, to decide the fulfillment of condition referred in clause (a), (e) (f), following issues needs to be considered:- (i) Who is the Local Authority to approve the housing project and to issue the completion certificate of the housing project? (ii) When the application for issue of the completion certificate is made within the prescribed time, any delay in issue of the completion certificate would relate back to the date of making of application or not? (iii) Whether each block of housing complex in the project is to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he completion certificate. In light of above, we are of the considered view that housing project falls with the Jaipur region and the JDA is the approving authority for development and construction of the housing projects and it shall be the local authority for the purposes of claim of deduction under Section 80IB(10) of the Act. (10.9) The next question that arises for consideration is when it can be said that the construction of these blocks A to G were complete. Whether the construction got completed on the date of application i.e, 23.03.2012 or on/before the meeting of JDA held on 28.08.2012 or when the completion certificate was issued by JDA on 21.03.2013 (in respect of Block A to E). In this regard, the assessee has submitted that at the time of moving the application for issuance of the complete certificate as evidence by the architect report as well as issuance of the no objection certificate by the Chief Fire Brigade Officer, Nagar Nigam, Jaipur all blocks were completed in March, 2012 itself. However, the JDA has issued a letter dated 08.05.2012 wherein it is stated that on physical inspection, work in respect of block A to D is almost complete except some fittin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etion certificate issued in respect of some of the blocks. As we have noted above, the construction has been completed and completion certificate has been issued by JDA in respect of block H I. Accordingly, the assessee shall be eligible to claim proportionate deduction u/s 80IB(10) in respect of Block H I. (12.6) In light of above discussions, where the allotment of flats has been made prior to 1.4.2009, the assessee shall be eligible to claim the tax deduction in respect of such flats even if there is violation of clause (e) (f) of section 80IB(10) of the Act. However, where the allotments of flats have been made after 1.4.2009, the assessee will necessarily be required to demonstrate the satisfaction of clauses (e) and (f) of section 80IB(10) of the Act. On perusal of assessment order, it is noted that complete details of allotees were not furnished before the AO and the AO based on limited information provided by the assessee, has identified certain cases where violation of above said conditions have been noted. The assessee has responded to these limited cases and even ld CIT(A) has upheld the contention of the assessee that the allotment has either not being mad ..... X X X X Extracts X X X X X X X X Extracts X X X X
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