INCOME TAX ACT, 1961

Section 80-IB(10)

Deduction under section 80-IB(10) - Allowability - No completion certificate obtained from concerned authority within stipulated time -

Assessee had permission to commence construction in respect of 60 flats however PMC granted completion certificates only in respect of 48 flats. AO held that initial permission being given to 60 flats the assessee has, therefore, failed to complete the project within 4 years from the end of financial year in which project was approved, i.e., 31-3-2009, therefore, deduction under section 80-IB(10) was also not admissible to assessee for not having completed the project during the eligible period. CIT(A) allowed deduction in respect of 48 flats out of 60 flats and for the balance 12 flats regarding which completion certificate was not obtained by assessee, deduction under section 80-IB(10) was disallowed. Assessee challenged this .Held: In order to get deduction under section 80-IB(10), after completion of housing project, completion certificate has to be obtained from concerned authority i.e. Municipal Corporation etc. which cannot be done away with. This becomes the fundamental requirement of this provision since prior to receiving completion certificate whatever work is done, it cannot be said that project has been completed as there has to be some authoritative check and finding about completion of project which is thereafter fit for residing etc. Therefore, deduction under section 80-IB(10) had been rightly denied in respect of those 12 flats. Regarding which there was no completion certificate obtained from concerned authority.

REFERRED :

FAVOUR : Against the assessee.

A.Y. : 2008-09

INCOME TAX ACT, 1961

Section 80-IB(10)

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