Case Law Details
Brief Facts
1. M/s Swastik Constructions, a proprietorship concern of the assessee, had under taken a construction project at Panchkula and claimed profit from this project of Rs.41,15,216/- as deduct ion under sect ion 80IB(10) of the Income Tax Act ,1961 (hereinafter refer red to as ‘Act ’ ) . The Assessing Officer examined the genuineness of claim of deduct ion under sect ion 80IB(10) of the Act . The Assessing Officer on the basis of the inquiries made, found that the project was granted approval on 15.02.1996 i .e. much before the date of October , 1998, provided in the Act for claiming deduct ion under sect ion 80IB(10) of the Act . The assessee had also not furnished completion certificate of the local authority that the project was completed by 31.03.2008. The Assessing Officer accordingly rejected assessee’s claim of deduct ion under sect ion 80IB(10) of the Act .
2. Assessee preferred an appeal before CIT(A) The assessee during course of appellate proceedings filed a copy of letter 12.04.1999 from the Di rector , Town and Count ry Planning, Chandigarh regarding “Approval of Service Plan/ estimates in respect of group housing colony in Swast ik Vihar , Mansa Devi Complex, Sector -5, Panchkula in an area of 2.99 acres at Panchkula” CIT(A) inferred that approval for the project was granted by the competent authority after 01.10.1998. The assessee had also f i led another let ter dated 09.08.2010 issued by District Town Planner (HQ. ) [for Director , Town and Count ry Planning, Haryana, Chandigarh] , clarifying that the letter dated 18.05.2010 issued by the Di rector , Town and Country Planning, Haryana, Chandigarh may be considered as completion certificate.
3. Since, completion certificate was not filed with AO, CIT(A) send it to AO for his comment and report. AO submitted his report. The learned CIT (Appeals) after taking into consideration the report of the Assessing Officer , held that in the absence of any specific provision regarding issuance of completion certificate in Punjab New Capital Periphery Control Act , 1952; the occupation certificate issued by District Town and Country Planning, Haryana, Chandigarh was to be treated as completion certificate, issued by the Government authorities for the purposes of claiming exempt ion u/s 80IB of the Act
4. Thereafter revenue preferred an appeal before Tribunal and the Tribunal remanded the matter to the learned CIT (Appeals) vide its order dated 23.11.2011 in 1TA No. 330/Chd/2011 by holding that:
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