INCOME TAX ACT, 1961

--Deduction under section 80-IB--Developing of housing projects Conditions precedent Assessing officer disallowed the deduction claimed by assessee under section 80-IB(10) holding that assessee did not complete the housing project within statutory time frame. It had got approval for housing project from local authority before 1-4-2004 and was required to complete construction latest by 31-3-2008. Commissioner (Appeals) and Tribunal after detailed discussion concluded that such requirement was not mandatory in nature. There was no doubt that assessee had completed construction well before 31-3-2008 and applied for BU permission to local authority in year 2006. The local authority, however, for technical reasons rejected the application. On 1-7-2006 and thereafter upon revised efforts from assessee, granted business use permission only on 19-3-2009. Held: Assessee was entitled for deduction as it had not only completed the construction two years before the final date and had applied for BU permission and also that such BU permission was not rejected on the ground that construction was not completed, but on some technical ground.

Income Tax Act, 1961 Section 80-IB(10)

In the Gujarat High Court

Akil Kureshi & Harsha Devani, J.J.