By Jagdish D. Shah
Jagdish T. Punjabi
Chartered Accountants
fiogf49gjkf0d
New Page 1
Part B :
UNREPORTED DECISIONS
(Full texts of the following Tribunal decisions are available at
the Society’s office on written request. For members desiring that the Society
mails a copy to them, Rs.30 per decision will be charged for photocopying and
postage.)
12 D. K. Construction v. ITO
ITAT Indore Bench, Indore
Before Joginder Singh (JM)
and
R. C. Sharma (AM)
ITA No. 243/Ind./2010
A.Y. : 2006-07. Decided on :
6-12-2010
Counsel for assessee/revenue
:
M. K. Sharma/P. K. Mitra
S. 80IB(10) of the
Income-tax Act, 1961 — Deduction in respect of profits and gains arising from
development of housing project — Date of completion of the housing project —
Relevant date is not the date of issuance of the completion certificate by the
local authority but the date of completion as mentioned in the certificate.
Per R. C. Sharma :
Facts :
The assessee was engaged in
the business of civil construction, building and developing housing project. It
claimed deduction of Rs.36.63 lacs u/s. 80IB(10) of the Act. According to the
AO, the housing project was not completed prior to the prescribed date of
31-3-2008. The contention of the assessee was that it had completed the project
before the prescribed date and the local authority was duly informed of the fact
vide its letter dated 21-3-2008. According to the assessee, merely because the
completion certificate was not issued by the local authority, over which the
assessee had no control, the same could not be made a basis for denial of claim.
However, according to the AO, the availability of the completion certificate
before the date prescribed was a must for the allowance of deduction
u/s.80IB(10). Therefore, he rejected the assessee’s claim for deduction. On
appeal, the CIT(A) confirmed the disallowance.
Held :
According to the Tribunal,
what is crucial is not the date of issue of letter by the local authority, but
the date mentioned in the letter certifying completion of the project.
Therefore, it rejected the contention of the Revenue to the effect that the date
of completion shall be taken as the date on which the certificate is physically
issued by the local authority.
