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TMI Blog2019 (2) TMI 1440X X X X Extracts X X X X X X X X Extracts X X X X ..... t. 2. Section 80IB(10) allows a deduction of 100% to an undertaking developing and building housing projects approved before the 31st March 2007, provided such undertaking has commenced or commences development and construction of the housing project on or after 1st day of October 1998. 3. In the present case, the Commissioner of Income Tax (Appeals) as well as the Tribunal found that the assessee had undertaken the housing project known as "Jai Hind" and the sequences to the event of undertaking the said housing project has been re-produced in paragraph 8 of the order of the Commissioner of Income Tax (Appeals), wherein it is stated that the date of approval of the said project by the local authority was given on 30th September 1998, jus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted by coordinate bench of this Court on 28.11.2008 on the following substantial questions of law: "Whether on the facts and in the circumstances, the Income Tax Appellate Tribunal was right in law in allowing the deduction under Section 80IB of the Income Tax Act, even though the assessee commenced or commences development and constructions of the Housing Project prior to 01.10.1998?" 6. The learned counsel for the Revenue, Mr.Ravikumar has urged before us that since some portion of expenditure for development of the said construction project was incurred by the assessee prior to the cut off date, the development work had started prior to the cut off date and therefore, the assessee was not entitled to the said benefit of deduction unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aded to take a view different from the view taken by the Tribunal. A clear finding was recorded by the Tribunal that the assessee had filed the details and calculations about the built-up area of the residential units. It would be unreasonable to hold that the Assessing Officer ignored those details. Moreover the statutory auditors had clearly mentioned the dates of approval of the lay out plan of the residential colonies. The Assessing Officer was thus made aware of the dates on which the approvals were granted in respect of each of the four housing projects. The more important aspect was the applicability of clause (a) of Section 80IB(10). On this aspect the Tribunal held that any construction carried out before the receipt of necessary ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Tribunal shows that the determination of the question as to when the undertaking commenced development and construction, in the absence of any statutory prescription, has to be decided in a pragmatic and reasonable way. It would have been an entirely different issue had there been a statutory prescription of what would be the date of commencement of construction or development. It is certainly a debatable issue on which more than one plausible view is reasonably possible and merely because the Assessing Officer has taken one plausible view, it cannot be said that the assessment is erroneous or prejudicial to the interest of the Revenue. This position stands well settled by the judgments of the Supreme Court cited supra. The Tribunal appl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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