ITO Vs. SAMEER DEVELOPERS

JUDGEMENT

(1.) THE above 2 appeals filed by the Revenue are directed against the common order dated 07 -11 -2013 of the CIT(A) -III, Pune relating to Assessment Years 2009 -10 & 2010 -11 respectively. For the sake of convenience, these were heard together and are being disposed of by this common order.

(2.) FACTS of the case, in brief, are that the assessee is a firm engaged in the business of construction activities. It filed its return of income on 31 -10 -2009 declaring total income of Rs. 1,63,000/ - after claiming deduction of Rs. 91,13,600/ - u/s. 80IB(10) of the I.T. Act. During the course of assessment proceedings the Assessing Officer observed that the assessee was developing a housing project at Jalochi in Baramati in respect of which the deduction u/s. 80IB(10) at Rs. 91,13,600/ - has been claimed by the assessee. He observed that the project had a sanction of 7 buildings as per sanction dated 16 -09 -2004 and therefore the same were to be completed and supported by completion certificate issued by the local authority on or before 31 -03 -2009 as per the provisions of section 80IB(10)(a)(ii). He therefore asked the assessee to substantiate its claim of deduction u/s. 80IB(10). From the various details furnished by the assessee, he observed that out of the 7 buildings sanctioned as per plan of sanction only 6 buildings were completed upto 31 -03 -2009. He therefore asked the assessee as to why the deduction claimed u/s. 80IB(10) should not be disallowed for non compliance of the condition of completion of the project.

(3.) IN appeal the Ld. CIT(A) held that deduction u/s. 80IB(10) should be allowed to the assessee in respect of Building Nos. 2 to 6 which were completed before 31 -03 -2009. The relevant observations of the Ld. CIT(A) from para 6 to 6.2 are as under: