Delay in filing the appeal was condoned. Tribunal also held that the Central Board of Direct Taxes Instruction No. 4 of 2009 dated June 30, 2009 clarified that the assessee could claim deduction under section 80-IB(10) on a year-to-year basis when it was following the percentage completion method and such a deduction so granted in each of the years could be withdrawn if the condition of completing the project within the stipulated period was not fulfilled. The project of the assessee contained eleven blocks in an area of 11.05 acres and the assessee had completed seven blocks in totality, F, G, H, I, J, K and L and had also furnished the occupancy certificate dated March 29, 2012. Therefore, the assessee was eligible for deduction under section 80IB(10) on the profits earned from those buildings The assessee had submitted the building completion notice” on July 4, 2014 only. Therefore, the deduction claimed under section 80-IB(10) Explanation (i), (ii) pertaining to its A, D and E housing projects was rightly rejected by the authorities. (AY. 2013-14 to 2016-17)
Manjeera Projects v. ACIT (2021) 92 ITR 148 (Hyd.)(Trib.)
S. 80IB(10) : Housing projects-Completion certificate-Application for issuance of certificate and fees was paid within time specified-Delay in issuance of certificate by Municipal corporation-Occupancy certificate deemed to have been issued-Entitle to deduction-Project for which building completion application was made 4-7-2014, schedule date of completion was 31-3-2014-Denial of exemption was justified-Entitle to deduction in respect of flats not exceeding area of 1500 Sq. ft-Delay in filing the appeal was condoned. [S. 254(1)]