Income Tax Appellate Tribunal - Ahmedabad
Saket Corporation, Baroda vs Assessee on 14 August, 2014
आयकर अपीलीय अिधकरण,
अिधकरण, अहमदाबाद Ûयायपीठ ''डȣ
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डȣ अहमदाबाद।
IN THE INCOME TAX APPELLATE TRIBUNAL
"D" BENCH, AHMEDABAD
ौी मुकुल कुमार ौावत,
ौावत, Ûयाियक
याियक सदःय एवं ौी एन0
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BEFORE SHRI MUKUL Kr. SHRAWAT, JUDICIAL MEMBER AND
SHRI N.S. SAINI, ACCOUNTANT MEMBER
ITA No. 3377/Ahd/2010
(Assessment Year 2007-08)
Saket Corporation, Vs Income Tax Officer,
A/25-116, Krishna Industrial Ward-2(6),
Estate, BIDC Gorwa, Baroda.
Baroda-390016.
PAN: ABDFS9216Q
अपीलाथȸ/ Appellant ू×यथȸ / Respondent
Revenue by : Shri Roopchand, Sr. DR
Assessee(s) by : Smt. Urvashi Shodhan, AR
सुनवाई कȧ तारȣख/
/ D at e o f H e a r in g : 06 / 08 / 20 14
घोषणा कȧ तारȣख /Dat e o f P ro n ou n ce me nt : 1 4 /0 8/ 2 01 4
आदे श/O R D E R
PER SHRI N.S. SAINI, ACCOUNTANT MEMBER:
This is an appeal filed by the assessee against the order of the Commissioner of Income Tax (Appeals)-II, Baroda dated 26.08.2010.
2. The only grievance of the assessee in this appeal is that the Commissioner of Income Tax (Appeals) erred in confirming disallowance of deduction u/s. 80IB(10) of the Act by the Assessing Officer holding that the assessee lost eligibility for claiming deduction u/s. 80IB(10) since the ITA No. 3377/A/2010 Saket Corporation, Baroda AY 2007-08 -2- assessee failed to obtain project completion certificate from VMSS for the entire project.
3. We have heard the rival submissions and perused the orders of lower authorities and material available on record. In the instant case, the deduction claimed u/s. 80IB(10) in respect of development of housing project was denied by the Assessing Officer on three counts including on the ground that the completion certificate of the housing project was not obtained.
4. On appeal, the Commissioner of Income Tax (Appeals) accepted the contention of the assessee in respect of the other grievances except on the ground of non-obtaining of the completion certificate. In other words, the Commissioner of Income Tax (Appeals) has held that the assessee is otherwise entitled for deduction u/s. 80IB(10) in respect of development of housing project but for not obtaining the certificate of completion from the local authority approving the project.
5. Before us, the Authorized Representative of the assessee pointed out that the law which requires obtaining of completion certificate from the local authority who had granted approval for the project has come into force with effect from 01.04.2005 and therefore applicable in respect of housing projects which were approved after that date. In support of the above contention, the Authorized Representative of the assessee relied on the decision of Hon'ble Delhi High Court in the case of CIT Vs. CHD Developers Ltd. (2014) 362 ITR 177 (Delhi) wherein it has been held as under:
"The approval for the project was given by the Development Authority on March 16, 2005. Clearly the approval related to the period prior to 2005, i.e., before the amendment, which insisted on issuance of the completion certificate by the end of the four- year period, was brought into force. The application of such stringent conditions, which are left to an independent body such ITA No. 3377/A/2010 Saket Corporation, Baroda AY 2007-08 -3- as the local authority who is to issue the completion certificate, would have led to not only hardship but absurdity. As a consequence, the Tribunal was not, therefore, in error of law while holding in favour of the assessee."
6. We find that in the instant case, the housing project was approved on 10.03.2004 by the competent authority. The above fact is not in dispute. On the above fact, as per the decision of the Hon'ble Delhi High Court in the case of CIT Vs. CHD Developers (supra), the condition for obtaining completion certificate within four years of the date of approval for being eligible for deduction u/s. 80IB(10) is not applicable. The Departmental Representative could not point out any good reason as to why the aforesaid decision of the Hon'ble Delhi High Court should not be followed in the instant case.
7. We, therefore, respectfully following the above decision of the Hon'ble Delhi High Court, set aside the order of the Commissioner of Income Tax (Appeals) on this issue and delete the disallowance of deduction u/s. 80IB(10) of the Act to the assessee. Thus, the ground of appeal of the assessee is allowed.
8. In the result, the appeal of the assessee is allowed.
Order pronounced in the Court on Thursday, the 14th of August, 2014 at Ahmedabad.
Sd/- Sd/-
(MUKUL Kr. SHRAWAT) ( N.S. SAINI)
JUDICIAL MEMBER ACCOUNTANT MEMBER
Ahmedabad; Dated 14/08/2014
Ghanshyam Maurya, Sr. P.S.
ITA No. 3377/A/2010
Saket Corporation, Baroda
AY 2007-08
-4-
TRUE COPY
आदे श कȧ ूितिलǒप अमेǒषत/Copy
षत of the Order forwarded to :
1. अपीलाथȸ / The Appellant
2. ू×यथȸ / The Respondent.
3. संबंिधत आयकर आयुƠ / Concerned CIT
4. आयकर आयुƠ(अपील) / The CIT(A)-III, Ahmedabad
5. ǒवभागीय ूितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad
6. गाड[ फाईल / Guard file.
आदे शानुसार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt.Registrar) उप/ आयकर अपीलीय अिधकरण, अिधकरण, अहमदाबाद / ITAT, Ahmedabad