CIT Vs North City Developers

 

Whether once the completion certificate is obtained from the Municipality within four years corner enshrined u/s 80IB, the benefit of such provision cannot be denied to the developer – YES: HC

 

– Revenue’s appeal dismissed: CALCUTTA HIGH COURT

 

Whether once the completion certificate is obtained from the Municipality within four years corner enshrined u/s 80IB, the benefit of such provision cannot be denied to the developer – YES: HC

 

++ the problem in this case is that, the completion certificate was issued by Kolkata Municipal Corporation on May 12, 2007 and the benefit taken by the assessee in that assessment year, i.e. in the previous year 2006-2007. This is the objection of the Revenue. The counsel for assessee contends that since the certificate of completion was obtained on May 12, 2007, the benefit of Section 80-IB(10) ought to have been taken in the F.Y 2007-2008 and not A.Y 2007-2008. The Revenue’s counsel has however interpreted the said section in a different way, taking the aid of the CBDT Circular – Instruction No.4 2009 dated June 30, 2009. He said that the development and building housing project had to be approved before March 31, 2007 and had to be completed within four years;

 

++ in the case at hand the approval was obtained on 6th May, 2004. The completion certificate was also obtained within four years of 31st March, 2007. Surely, the assessee fulfilled the requirements of Section 80-IB (10). Now what would be the effect of giving the assessee the benefit in the A.Y 2007-2008 and not in the previous year 2007-2008. The Revenue’s counsel in course of his argument that the assessee wanted the benefit only once. So, it could be given to him in any one of the four years in which the construction was under way till the year of obtaining the completion certificate. So, if it has been given in one of those years, no loss or prejudice has been caused to the Revenue.

 

ITA No. 23 of 2012