Itta/502/2013 Of Commissioner Of Income Tax-Iii v. Sigma Constructions

IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH ATHYDERABAD THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTAAND THE HON’BLE SRI JUSTICE SANJAY KUMAR I.T.T.A. No. 502 of 2013 DATE: 24.10.2013 Between: Commissioner of Income Tax-III,Hyderabad.And … Appellant M/s. Sigma Constructions,Hyderabad. … Respondent This Court made the following: THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTAANDTHE HON’BLE SRI JUSTICE SANJAY KUMAR I.T.T.A. No. 502 of 2013 JUDGMENT:(Per the Hon’ble the Chief Justice Sri Kalyan Jyoti Sengupta) This appeal is sought to be admitted on the following suggested questions of law: “1. In the facts and circumstances of the case, whether the Hon’ble Tribunal (ITAT) is correct in law in allowing deductionunder Section 80IB of the Act to the respondent – assesseewithout appreciating the fact that the basic condition underSection 80IB(10)(b) of the Act of completing the project on plot ofland whose area is a minimum of one (1) acre, is not fulfilled inthe respondent – assessee’s case? 2. In the facts and circumstances of the case, whether the Hon’ble Tribunal (ITAT) is justified in law in holding that therespondent – assessee is entitled to deduction under Section80IB(10) of the Act inspite of the respondent – assessee’s failureto produce the Project Completion Certificate as required underthe Statute?” We have heard Sri B. Narasimha Sarma, learned counsel for theappellant, and gone through the impugned judgment and order of the learnedTribunal. The only point, which has fallen for consideration, is as to whether theappeal should be admitted on the interpretation of Section 80IB(10) of theIncome Tax Act, 1961. It appears that the learned Tribunal, after reading the section as a whole and also the CBDT instruction No.4 of 2009, dated 30.06.2009, held that theProject Completion Certificate under the said Section is not required withregard to the benefit given under the said section after completion of theproject. The benefit of the said section can be given on completion of year-to-year basis and this has been clarified in the said circular in the manner asfollows: “(a) The deduction can be claimed on a year-to-year basis where the assessee is showing profit from partial completion of the project in every year. (b) In case it is late and it is found that the condition of completing the project within the specified time-limit of 4 years asstated in S.80IB(10) has not been satisfied, the deductiongranted to the assessee in the earlier years should be withdrawn.” In view of the above clarification and having noted the factual position,the learned Tribunal held that Completion Certificate is not required. Therefore, we do not find any element of law in this appeal. The appeal is accordingly dismissed. _____________________ K.J. SENGUPTA, CJ ____________________ SANJAY KUMAR, J