INCOME TAX OFFICER 33(1)(1), MUMBAI vs. ARIHANT BUILDERS AND DEVELOPERS, MUMBAI

ORDER PER N.K. PRADHAN, A.M. This is an appeal filed by the Revenue. The relevant assessment year is 2012-13. The appeal is directed against the order of the Commissioner of Income Tax (Appeals)-45, Mumbai [in short ‘CIT(A)’] and arises out of the assessment completed u/s 143(3) of the Income Tax Act 1961, (the ‘Act’).

M/s Arihant Builders 2 4387/Mum/2017 2. The ground of appeal filed by the revenue reads as under: On the facts and circumstances of the case an in law, the Ld. CIT(A) erred in allowing the claim u/s 80IB(10) without appreciating the fact that as per the provisions of the sub-section (iii) of section 80IB(10) of the I.T. Act, 1961, the project should be completed within five years from the end of the financial year, in which the housing project is approved by the local Authority.

3. Briefly stated, the assessee is a partnership firm engaged in the business of builder and developers. It filed its return of income for the assessment year (AY) 2012-13 on 24.09.2012 declaring total income at Rs. Nil. It claimed deduction of Rs.1,60,52,280/- u/s 80IB(10) of the Act. During the course of assessment proceedings, the AO noticed that as per the commencement certificate, the assessee started its construction on 12.08.2005 and as per the provisions of section 80IB(10), the assessee had to complete the project on or before 31.03.2011, however, the completion certificate was granted by the local authority on 08.01.2013. Thus the AO concluded that since the project was not completed on or before 31.03.2011, the assessee was not eligible for deduction u/s 80IB(10).

4. In appeal, the Ld. CIT(A) followed the order of his predecessor-in- office for AY 2009-10 and AY 2010-11 and facts being similar allowed the appeal filed by the assessee.

5. Before us, the Ld. DR relies on the order of the AO whereas the Ld. counsel of the assessee, relying on the order of the ITAT ‘A’ Bench, Mumbai in assessee’s own case for AY 2010-11 (ITA No. 4105/M/2015)