THE COMMISSIONER OF INCOME TAX Vs. GLOBAL REALITY

JUDGEMENT

(1.) THESE appeals pertain to the same assessee, filed by the Department against the common judgment of the Income Tax Appellate Tribunal, Indore Bench, Indore dated 29.09.2011; and involve identical substantial question of law.

(2.) BRIEFLY stated, the assessee, a partnership firm engaged in construction and sale of houses, claimed deduction for the respective assessment years under Section 80IB(10) in particular Clause (a), for Rs. 35,42,526/ - (AY 2004 -05), Rs. 23,42,464/ - (AY 2005 -06) and Rs. 9,62,915/ - (AY 2006 -07). According to the assessee, after the approval was granted by the Municipal Corporation, the housing project was started before 31.03.2004. The assessee submitted application to the Municipal Corporation on 16.01.2008, claiming that the housing project was completed. The site was inspected by the Inspector of the Municipal Corporation on 27.02.2008. Admittedly, the completion certificate was not issued before the cut off date (i.e. 31.03.2008). It was so issued by the Local Authority on 04.05.2010 which, however, did not mention the date of completion of the project. The Local Authority later on, clarified vide letter dated 23.03.2011, that the date of completion of the project was 27.02.2008. Relying on the said clarification, the assessee contended that the project was in fact completed on 27.02.2008, before the cut off date; and for which reason the assessee was entitled for deduction within the meaning of Section 80IB(10)(a). The Assessing Officer, however, disallowed the claim of the assessee on the finding that inspite of repeated opportunity given to the assessee during the course of assessment proceedings, the completion certificate was not produced before 31.03.2008. That fact was admitted by the assessee in its letter dated nil furnished to the Assessing Officer on 24.12.2008. Further, a letter was issued by the Municipal Corporation dated 18.12.2008, pursuant to the enquiry made in that behalf stating that completion certificate has not been issued to the assessee till that date and that the application of the assessee was still being processed. On these facts the Assessing Officer proceeded to complete the Assessment proceedings and disallowed the deduction claimed by the assessee under Section 80IB(10)(a). Notably, the completion certificate issued by the Local Authority is of subsequent date and not issued within the stipulated date.

(3.) THE Tribunal by the impugned judgment decided all the three appeals of the present assessee as also of another assessee (M/s. Global Estates) together.