Municipal Corporation is responsible for issuing completion certificate so the assessee cannot be denied releife under section 80IB on this ground

Last updated: 23 August 2012

Court :
INCOME TAX APPELLATE TRIBUNAL

Brief :
The assessee is a partnership firm. It developed a residential housing project by the name of “Surendra Estate” at Chuna Bhatti, Bhopal. The assessee got the approval for the project from Bhopal Municipal Corporation on 07.05.2003. The project was started inF.Y.2003-04, relevant to A.Y.2004-05. It was completed in F.Y. 2005-06 relevant to A.Y. 2006-07. As per the submissions placed on record and the arguments made before us, all units of the project were sold in F.Y.s 2003-04 to 2005-06. For A.Y. 2004-05, the assessee claimed deduction u/s 80IB (10) of the Act for the first time. The same was allowed by the Assessing Officer vide an order passed u/s 143(3) of the Act. For A.Y. 2006-07 also, the deduction claimed was granted, though u/s 143(1) of the Act. For A.Y. 2006-07, however, the claim of the assessee for deduction u/s 80IB (1) of the Act was disallowed by the Assessing Officer, observing that the assessee had failed to comply with the provisions of Section 80IB (10) (a)(i) of the Act, regarding issuance of completion certificate before 31.03.2008. Subsequently, the cases for A.Y.s 2004-05 to 2005- 06 were re-assessed and the deduction claimed by the assessee was disallowed

Citation :
ACIT, Circle 27(1), Room No.218, D Block, Vikas Bhawan, New Delhi. (Appellant) Vs. Surendra Developers, C-47, Naryana Vihar, New Delhi & 240, Zone-1, M.P. Nagar, Bhopal. PAN: AAWFS1669R(Respondent)