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16. He pointed out that the first layout sanction was dated 01.08.1996, wherein within one year, the assessee was to start the construction, copy of the same is placed at pages 303 and 304 of Paper Book. However, the NA order is dated 30.12.1996 and hence, the first layout sanction was not complied with. Further, on 11.08.1997, a letter was sent to the PMC, Pune for sanctioning the plans on 24.06.1998. Revised second layout plan was sanctioned, copy of which is placed at page 330 of the Paper Book, which was not structural or engineering plan. At page 331 of the Paper Book at serial No.13, reference was made to cancellation of all earlier plans. Further, in the revised layout plan, condition numbers18 to 23 were laid down and as per condition No.24, existing structure had to be demolished. Even on 30.11.1998, a communication was issued where it is clearly stated that building plans were not sanctioned, copy of which is placed at page 333 of the Paper Book. On 19.12.1998, the first building plan i.e. the commencement certificate to construct and develop the building was sanctioned. The learned Authorized Representative for the assessee pointed out that there was no dispute to the date of completion i.e. the building had to be completed before 31.03.2003 and the assessee had completed the building by 20.03.2003. He further referred to the letters of PMC, Pune placed at page 344 of the Paper Book, where in respect of combination of flats, PMC asked to the M/s. Parmar Properties Pvt. Ltd.

33. Now coming to the second part of events chart i.e. vis-à-vis sanction obtained by the assessee for layout plants, the revised layout plan and the building plans, its commencement and completion. The tabulated events chart reads as under:-

Sr.No Date of Type of document Property Brief contents of documents Page Page Agreement Survey No. No. No From To 12 01/08/1996 Commencement 66 Mentioned in certificate at 303 304 Certificate condition no 12 That the certificate is valid for 1 year.

addressed to the assessee, wherein it was categorically stated that the plans from PMC have not been sanctioned and all the necessary drawings would be prepared only after sanctioning of the plans. The assessee was also requested not to start any development work on site. The copy of the said letter is placed at page 313 of the Paper Book. As per the assessee, the said document was impounded during the course of Survey. The next communication which is referred to by the assessee is the development agreement with the land owner of piece of land, wherein for consideration, the rights in the said property were acquired and along with permission to demolish old structure. The copies of the said documents are placed at pages 315 to 328 of the Paper Book. The ownership rights in the said piece of land were transferred for sum of Rs.4,10,000/- and the consent was given to demolish old construction. The assessee thereafter, received a revised layout sanction from the PMC dated 24.06.1998, copy of which is placed at pages 331 and 332 of the Paper Book. As per the revised layout of building sanction, the conditions as in the earlier layout sanction are same i.e. provision of colony roads, water lines, drainage and also the road to demarcation and sub-plotting of land. It is also one of the conditions to provide the development plan road passing to the land. The said commencement certificate also was valid for one year from the date of issue and as per clause 13, commencement certificate cancels all previous sanctions. Further, the other conditions of marking the area for HCMTR, Ring Railway before asking for building permission and also availing additional FAR against HCMTR Ring Railway area, corrected ULD order and upto date Tax clearance to be submitted before asking for building permission. One more clause which was in the revised plan was that the existing structure should be demolished before starting any development. The layout plan is also annexed, wherein it is mentioned that it is DP layout plan which makes the calculations and area statement under which the balance area which is available for development of M/s. Parmar Properties Pvt. Ltd.

receipt vouchers were impounded during the course of Survey. However, the assessee has clarified that as the project did not take off, the said advances were returned. The Revenue has not brought on record anything to contrary. The Assessing Officer and the CIT(A) thereafter refers to the commencement certificate issued by the PMC on 01.08.1996 which mentions that the permission is granted to carry out the development of survey No.66 with plan, is subject to the following conditions. The conclusion of the authorities below is that the assessee had received permission for development on 01.08.1996, which is ironic that the authorities come to conclusion that the assessee had received the so-called permission on 01.08.1996 i.e. on the date when the land in question was an agricultural land. The NA permission for the said land was received from the Collector, Pune office on 30.12.1996 which is placed at pages 308 and 309 of the Paper Book. This NA permission received on 30.12.1996 is admittedly, a pre-requisite for the development and construction of any land and it makes the land ready for construction activity. However, the activity to construct would only happen once the permission is received by the assessee i.e. building plan commencement certificate. The authorities below have also referred to certain communication of the Architect that the development had started prior to 1998 and the site visits on 01.08.1997 and 25.08.1997 which as per authorities below is the factum of commencement in addition to excavation and construction of roads prior to 01.04.1998. The above said stand of authorities below gets demolished by the revised layout plan issued by the PMC on 24.06.1998 which admittedly, is an approval for layout of the land. The said commencement certificate clearly mentions that it is valid for a period of one year, under which all the terms and conditions mentioned in the commencement certificate have to be complied with by the assessee. It also mentions that earlier sanction granted if any, is cancelled meaning thereby that even if certain sanction was given by the PMC, the same stands cancelled by the revised layout commencement M/s. Parmar Properties Pvt. Ltd.