9911796707
TMI Blog2015 (3) TMI 1368X X X X Extracts X X X X X X X X Extracts X X X X ..... the original commencement certificate was issued to the assessee on 06.09.1991 i.e prior to 01st October 1998. 2. The assessee is a partnership firm engaged in the business of builders and developers. The assessee filed its return of income on 28.10.2007 and claimed deduction u/s 80-IB(10) of Rs. 63,80,690/-. In the scrutiny assessment proceedings, the AO has noted that the first date of approval of the housing project by the local authority was 06.09.91 which was again amended on 3.10.2005. Accordingly, the AO questioned the eligibility of deduction u/s 80-IB(10). The assessee contended that the project was approved in accordance with the permission granted by the CIDCO vide commencement certificate dated 6.9.91 which was revalidated by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ocal authority is relevant and deemed as the date of commencement of housing project. He has referred the Explanation to section 80IB(10) and submitted that the revalidation of plan vide order dated 3.10.2005 is only an amendment in the plan first anctioned by the local authority in the year 1991, therefore, the commencement is also in the year 1991. 5. On the other hand, the Ld. AR has submitted that the original approval in the case was obtained from the local authority on 6.9.1991 in the name of original owner Mr. Rakesh Kumar Wadhawan. The original owner filed the appeal against the approval dated 6.9.1991 and accordingly fresh commencement certificate dated 3.10.2005 was issued. He has further submitted that the revalidation order da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpletion certificate of each individual building is issued separately by the local authority, therefore, there is no defect in the completion certificate issued in respect of the particular buildings on which the assessee has claimed deduction u/s 80-IB(10). 7. We have considered the rival submissions as well as relevant material on record. The AO as well as CIT(A) has given much emphasis on the commencement certificate issued on 6.9.1991 and further on 3.10.2005. It is pertinent to note that the approval/commencement certificate issued by the local authority is relevant only to the extent of the condition of completion of the project. For ready reference, we quote the relevant provisions of section 80-IB(10) as under:- "(10) The amoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of construction of the housing project shall be taken to be the date on which the completion certificate in respect of such housing project is issued by the local authority; (b) the project is on the size of a plot of land which has a minimum area of one acre: Provided that nothing contained in clause (a) or clause (b) shall apply to a housing project carried out in accordance with a scheme framed by the Central Government or a State Government for reconstruction or redevelopment of existing buildings in areas declared to be slum areas under any law for the time being in force and such scheme is notified by the Board in this behalf; (c) the residential unit has a maximum built-up area of one thousand square feet where such reside ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e deduction u/s 80-IB(10) is that the undertaking has commenced or commences development and construction of housing project on or after 1.10.1998. Sub-clause (i) to (iii) enumerate the different situations and stipulates the condition for completion of the project as per the respective date of approval by the local authority. Therefore, the approval of the project by the local authority is relevant only for the time span within which the project has to be completed. If a project is approved by the local authority before 01.04.2004 it has to be completed before 31.03.2008 to avail the deduction u/s 80IB(10). Similarly, if the project is approved by the local authority on or after 01.04.2004 but not later than 31.03.2005, then in order to av ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... DCO rejecting the modified development proposal vide order dated 18.06.1998 by filing the appeal u/s 47 of the Maharashtra Regional and City Planning Act 1966. The appeal was decided by the appellate authority on 8.9.1999. In pursuant to the order of appellate authority, the amended approval certificate dated 3.10.2005 was issued by the CIDCO. From perusal of the order dated 8.9.1999, we find that there was some construction in the project prior to the amendment proposal in the development plan put forward by the owner of the land which was rejected by the CIDCO vide order dated 18.06.1998. Therefore, the commencement of the project has to be taken into account as per the actual construction work started in respect of the project and not by ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
