| The Tax Publishers2019 TaxPub(DT) 6264 (SC) : (2020) 270 TAXMAN 0178 INCOME TAX ACT, 1961
Section 261 Section 80-IB(10)
Where the assessee preferred SLPs to appeal against the judgment(s) of Madhya Pradesh High Court in CIT v. Global Reality [ITA Nos. 35, 36 & 40 of 2012, dt. 21-8-2015] : 2015 TaxPub(DT) 4087 (MP-HC) and CIT v. Global Estate [ITA No. 34/2012, ITA No. 39/2012, ITA No. 41/2012, ITA No. 42/2012 & ITA No. 43/2012, dt. 21-8-2015] : 2019 TaxPub(DT) 8053 (MP-HC), whereby the High Court held that (i) the amended section 80-IB(10)(a) extends the benefit even to the housing projects approved by the local authority before 31-3-2007, instead of 31-3-2005 as was provided in the unamended provision, that the stipulation for obtaining completion certificate from the local authority before the cut-off date, must be construed as mandatory. Condition in clause (a) of section 80-IB(10) as amended w.e.f. 1-4-2005 neither operates retrospectively nor can be said to be absurd, unjust or expecting the assessee to comply with something which is impossible to achieve, that if this condition is not fulfilled, the assessee who maintains work-in-progress accounting method and has claimed deduction under section 80-IB(10)(a) must suffer the consequence of disallowance or withdrawal of the benefit claimed by him on that count, and (ii) if housing project was approved on or after 1-4-2004, assessee could avail of the benefit provided completion certificate issued by Local Authority is within four years from end of financial year in which concerned housing project was approved by Local Authority, if this condition is not fulfilled, assessee who maintains work-in-pogress accounting method and has claimed deduction under section 80-IB(10)(a) must suffer the consequence of disallowance or withdrawal of benefit claimed by him on that count respectively. The Supreme Court stayed the operation of the impugned judgment(s) in both the SLPs.
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Appeal (Supreme Court) - Special leave petition - Deduction under section 80-IB(10) - Construction and development of housing project--Obtaining completion certificate from local authority before 'cut-off date'/after cut off date
Assessee preferred SLPs to appeal against the judgments of Madhya Prades High Court in CIT v. Global Reality [ITA Nos. 35, 36 & 40 of 2012, dt. 21-8-2015] : 2015 TaxPub(DT) 4087 (MP-HC) and CIT v. Global Estate [ITA No. 34/2012, ITA No. 39/2012, ITA No. 41/2012, ITA No. 42/2012 & ITA No. 43/2012, dt. 21-8-2015] : 2019 TaxPub(DT) 8053 (MP-HC), whereby the held that (i) the amended section 80-IB(10)(a) extends the benefit even to the housing projects approved by the local authority before 31-3-2007, instead of 31-3-2005 as was provided in the unamended provision, that the stipulation for obtaining completion certificate from the local authority before the cut-off date, must be construed as mandatory. Condition in clause (a) of section 80-IB(10) as amended w.e.f. 1-4-2005 neither operates retrospectively nor can be said to be absurd, unjust or expecting the assessee to comply with something which is impossible to achieve, that if this condition is not fulfilled, the assessee who maintains work-in-progress accounting method and has claimed deduction under section 80-IB(10)(a) must suffer the consequence of disallowance or withdrawal of the benefit claimed by him on that count, and (ii) if housing project was approved on or after 1-4-2004, assessee could avail of the benefit provided completion certificate issued by Local Authority is within four years from end of financial year in which concerned housing project was approved by Local Authority, if this condition is not fulfilled, assessee who maintains work-in-pogress acounting method and has claimed deduction under section 80-IB(10)(a) must suffer the consequence of disallowance or withdrawal of benefit claimed by him on that count respectively.Held: The Supreme Court stayed the operation of the impugned judgment(s) in both the SLPs.
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