ITAT upheld deduction u/s 80IB (of Income Tax Act, 1961) as assessee had been granted approval

1. The assessee was a builder. It claimed deduction under section 80IB (of Income Tax Act, 1961), amounting to Rs.1,50,69,453/-. The Assessing Officer noticed that the assessee had filed Completion Certificate from Municipal Town Planner, Municipal Corporation, Patiala alongwith a letter from the assessee written to Commissioner requesting for Completion Certificate. Assessing Officer disallowed the deduction under section 80IB(10) (of Income Tax Act, 1961) to the assessee as the housing project was not completed within five years from the end of the month in which the housing project was approved, and Completion Certificate did not mention the date of completion and, therefore, the claim of the assessee regarding completion of the project within the stipulated time was not verifiable.

2. CIT (Appeals) allowed the appeal of the assessee.

3. On appeal, the ITAT held as under:

"4. The facts of the present case are on a strong footing, in the sense that the approval has not been refused to it and in fact, has been granted to it on a later date, that too without raising any objection. Since the facts are the same, respectfully following the order of the Hon'ble High Court, we confirm the order of the learned CIT (Appeals).”

Case Reference- The Income Tax Officer. Vs. M/s Ambey Developer Pvt. Ltd

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, CHANDIGARH BEFORE SHRI H.L. KARWA, VICE PRESIDENT AND MS. RANO JAIN, ACCOUNTANT MEMBER ITA No.688/Chd/2014 ( Assessment Year : 2009-10) & ITA No.852/Chd/2014 ( Assessment Year : 2010-11)