The Hyderabad bench of ITAT upheld that deduction cannot be denied since assessee could not furnish the project completion certificate.
The bench including P. Madhavi Devi, Judicial Member and S.Rifaur Rahman, Accountant Member was considering the case between Sahara States – Hyderabad and Additional Commissioner of Income Tax.
In the instant case assessee being an AOP engaged in the business of development of land and construction of houses filed his return of income during the impugned year. The issue begins with the failure on the side of assessee to produce project completion certificate and disallowed the claim of deduction under section 80IB(10) of the Act.
Aggrieved, the assessee challenged the same before CIT (A) who confirmed the order of Assessing Officer as good. This leads to another appeal before this tribunal by the assessee.
The counsel for the assessee submitted that the said claim was enjoyed by them from the beginning of assessment year 2003-04 and the disallowance under section 80IB (10) was made all the year thereafter.
The counsel also added that the same issue once contested before Coordinate bench of the Tribunal in the assessee’s own case where it has been held that with retrospective effect from 1-4-2005, the project which is approved to prior date then the need for obtaining completion certificate is not applicable for claiming deduction.
On the counterpart revenue firmly believed the order of revenue. The bench heard the rival contention and perused the document on record. The bench observed that assessee had completed the project and rightly requested the local authorities for issuance of completion certificate.
Finally, the bench observed as “if the Commissioner does not intimate refusal to give the occupancy certificate, then it is deemed to have been given. In these circumstances also, we hold that the assessee is eligible for deduction u/s 80IB (10) of the Act as the relevant A.Y before us i.e. A.Y 2007-08 which is subsequent to the initial A.Y of the claim and the Tribunal has already allowed the deduction in the earlier A.Ys.”
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