Sec. 80IB(10) of Income Tax Act, 1961— Deduction —Respondent-assessee was a partnership firm engaged in the business of “developers and builders”. In the assessment proceeding for the assessment year under consideration, assessee fled e-return of income declaring total income at Nil following claims of deduction under Section 80IB of the Act. During the assessment proceeding, Assessing Officer queried about the completion certificate of the buildings in question. Respondent-assessee stated before the Assessing Officer that the completion certificate was under process though the building project was completed. By the assessment order dated 14.03.2013, Assessing Officer did not allow the claim of the assessee for deduction under Section 80IB of the Act which was thereafter added to the income of the assessee and treated as its income.Assessee preferred appeal before the Commissioner of Income Tax (Appeals) and also referred to as the first appellate authority hereinafter. In the appellate proceedings too, the first appellate authority noted thatassessee did not produce the completion / occupation certificate within the stipulated time limit. Before the appellate authority also, the said certificate was not produced. Accordingly, by the appellate order, the first appellate authority held that the assessee was not entitled to get deduction under Section 80IB(10) of the Act. Assessee thereafter preferred further appeal before the Tribunal.
Tribunal noted that assessee had furnished the commencement certificate and, occupation certificate issued, besides other documents which clearly shows that there were approvals which cover full occupation / permission for all the blocks of the building project. In view of the above facts, Tribunal accepted the contention of the assessee that the building was completed and occupation in respect of all the blocks of the project were obtained within the stipulated time limit on. There being no violation of any of the conditions mentioned in Section 80IB(10)of the Act, the above claim of the assessee was allowed by the Tribunal. --- Pr. CIT vs. RATTANCHAND RIKHABDAS JAIN CHEMICAL WORKS.[2020] 23 ITCD Online 85 (BOM)