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TMI Blog2021 (3) TMI 1221X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal. 2.1 The assessee is a builder and flat promoter. During the year, the assessee had executed projects at MRC apart from ongoing projects in various places. In addition, the assessee had also earned profit on sale of flat and land. The other income includes profit on sale of interior income from wind energy generation and rental income. The assessee filed its return of income for the assessment year 2008-09 admitting total income of Rs. 53,10,42,860/-. The case was selected for scrutiny and notice under section 143(2) and 115WE(2), dated 21.08.2009 was served on the assessee. Thereafter, a notice under section 142(1) calling for details was served on the assessee. Thereafter, after obtaining the information, the assessment was finali ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duction under section 801B(10). The assessee has stated vide letter dated 267.11.2010 that the conditions stipulated were satisfied. As regards approval of the local authority, the assessee has stated that the lands were approved by the CMDA vide permit dated 29.05.2006 and the Assessing Officer held that the approval was obtained in the name of the Director Mrs. Kalaiarasi, who was not a developer as the approval was in the name of the developer. 2.5 Aggrieved over the order passed by the Assessing Officer, the assessee filed an appeal before the Commissioner of Income Tax (Appeals), who deleted the addition made under section 36(1)(ii) holding that the said deduction could be made applicable only to employee who receives commission and n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h Court reported in (2012) 20 Taxmann. com 647 ( AMD Metplast Pvt Ltd v. Deputy Commissioner of Income Tax] wherein the Delhi High Court held as follows:- " ... 10. We fail to understand how the aforesaid observations assist and help the Revenue in the factual matrix of the present case. Ashok Gupta is the ManagingDirector and in terms of the Board resolution is entitled to receive commission for services rendered to the company. It is a term of employment on the basis of whichhe had rendered service. Accordingly, he was entitled to the said amount. Commission was treated as a part and parcel of salary and TDS has been deducted. Ashok Gupta was liable to pay tax on both the salary component and the commission. Payment of dividend is made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e planning details being subjected to the approval by the Corporation as the competent local authority and it having certified as to the completion as early as 28.12.2007, we are satisfied that the completion being on or before 31.3.2008, the reliance placed on Explanation (2) to reject the assessee's case could not be sustained. In any event, given the fact that the approval, which is an administrative process, is purely at the hands of the Statutory Authority concerned, over which, the assessee could not have any control, the Explanation cannot, in any manner, have a negative effect on a factual aspect of the matter, namely, completion of the construction. Thus, in a case like this, where, the local authority, being the Corporation, h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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