INCOME TAX ACT, 1961

--Deduction under section 80-IB--Income from developing and building housing project Completion certificate, ownership of land, etc.--Assessee was engaged in the business of developing construction of housing project. Assessee had entered into an agreement with HM(P) Ltd. for Joint development of property. The terms of agreement stated that the assessee had agreed to build an extent of 1,91,990 sq.ft. super built up area of the said property. The owner of property namely HM(P) Ltd. would be paid a sum of Rs. 600 sq.ft. worked out on the super built up area as towards the sale of proportionate undivided share of the land transferred to the buyor and the aggregate amount payable to the owner of the property would be Rs. 11,51,94000. On the basis of planning details, etc., the local authority issued completion certificate on 28-12-2007 to Chennai Metropolitan Development Authority (CMDA), considering certain dispute with CMDA the owner filed writ petition before High Court and on the director of High Court directed (CMDA) to consider owner's explanation and pass order within a period of eight weeks. However, thus, CMDA passed and issued completion certificate only on 13-6-2008. The assessing officer view that the assessee had acted only as builder for HM(P) Ltd. and section 80-IB(10) allow deduction only in respect of developing and building housing project and not developing or building since assessee had only acted as executor of the project and was not the owner of the property the deduction under section 80-IB(10) could not be allowed. Yet another violation pointed out by the assessing officer was that the extent of built up area in the project exceeded the condition as to limit given under section 80-IB(10). in the circumstances the assessing officer view that assessee was not entitlement to relief under section 80-IB. The Commissioner (Appeals) upheld the order of assessing officer. Held: Not justified. As assessee had completed housing project on 5-3-2006 and as the planning details was subjected to approval of CMDA and who issued completion certificate on 28-12-2007 the completion was on or before 31-3-2008. The letter/completion certificate issued on direction of court issued on 13-6-2008 cannot negative assessee's claim.