TMI Blog2018 (6) TMI 754X X X X Extracts X X X X X X X X Extracts X X X X ..... approval by the competent authority - Decided in favor of assessee. - ITA No.340/Nag./2017 - - - Dated:- 14-6-2018 - SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER AND SHRI RAM LAL NEGI, JUDICIAL MEMBER For The Assessee : Shri K. P. Dewani For The Revenueb : Shri Gitesh Kumar ORDER PER SHAMIM YAHYA, A.M. This appeal by the assessee is directed against the order of the ld. Commissioner of Income Tax (Appeals)-1, Nagpur dated 02.06.2017 and pertains to assessment year 2010-11. 2. The grounds of appeal read as under 1. The learned CIT(A) erred in confirming addition at ₹ 27,91,163/- made by A.O. by disallowing the claim of deduction u/s.80IB(10) of I.T. Act, 1961. 2. The addition made by A.O. by disallowing the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8 has not been accepted by the Assessing Officer in view of provisions of Maharashtra Regional Town Planning Act, 1966. The Assessing Officer has accordingly made the impugned addition. 4. Upon the assessee's appeal, the ld. Commissioner of Income Tax (Appeals) confirmed the addition by accepting the assessing officer's reasoning that approval from competent authority has not been approved. 5. Against the above order, the assessee is in appeal before us. 6. We have heard both the counsel and perused the records. The ld. Counsel of the assessee submitted that the issue is squarely covered in favour of the assessee by several decisions of the tribunal and also from the Hon'ble jurisdictional High Court. In this regard, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eld that Gram Panchayat is the local authority for the purpose of section 80IB. Order of Hon'ble CIT(A) has been upheld by Hon'ble ITAT, Nagpur Bench vide order dated 22/11/2015 in ITA No.35 36/Nag/2014. E) Revenue has filed an appeal before Hon'ble High Court, Nagpur Bench against the order of Hon'ble ITAT. Hon'ble Jurisdictional High Court dismissed the appeal filed by revenue and upheld the order of ITAT in ITA No. 25 of 2016 vide judgement dated 24/10/2016. F) The assessee has developed housing project at Godhani Village which is in area falling under the supervision of Village Panchayat Godhani. Section 52 of the Bombay Village Panchayat Act, 1958 provides that sanction of construction of building within the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e find that in the present case the assessee has derived income from development of housing project u/s.80IB of the Act. The assessee has claimed to have fulfilled all the requisite conditions for grant of deduction. The assessee has submitted approval taken on 26/6/2006 from Secretary of Gram Panchayat along with completion certificate dated 28/2/2010 issued by Gram Panchayat. The authorities below have not disputed the fulfillment of the requisite condition for deduction u/s. 80-IB of the Act, except for the contention that the Gram Panchayat was not the local authority competent for sanction of plans of housing project. In this regard, we note that in a similar case in the case of M/s. Swapnashilp Developers where similar approval was th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er as also the record of Gram Panchayat, Besa. The Authorities have further held Gram Panchayat, Besa was the Local Authority granting the sanction or permission for the development of the housing project. According to both the Authorities, the conditions that were required to be satisfied for seeking deduction under the provisions of Section 80IB (10) of the Act were satisfied in the case of the assessee and, therefore, the Assessing Officer had committed an error in holding that the assessee was not entitled to deduction under the said provision. We find that the findings recorded by the Income Tax Appellate Tribunal and the Commissioner of Income Tax (Appeals) are based on a proper appreciation of the material on record and they do no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the local authority' in accordance with the provisions of Section 80IB (10) of the Act. 9. Now we examine the present case on the touchstone of above said case law. We find that the assessee in this case also has fulfilled all the conditions and the Revenue has not disputed, except for the Revenue's contention that sanction of the housing project has not been obtained from competent authority inasmuch as they have held that the gram panchayat is not the competent authority for the approval of the project. However, we note that similar case in similar facts and at the relevant date of approval which is similar as in this case honourable judicial High Court has held that the approval by the gram panchayat was in order and suffic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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