Runwal Developers, Pune V. Asst. CIT, Circle-3, Pune

ITA 1339/PUN/2010

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 85330 (ITAT-PUNE)
• Duration Of Justice: 4 year(s) 1 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-12-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 11-12-2014
• Assessment Year: 2006-2007
• Appeal Filed On: 15-11-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A, PUNE BEFORE SHRI G.S. PANNU, ACCOUNTANT MEMBER AND SHRI R.S. PADVEKAR, JUDICIAL MEMBER ITA NO.1339/PN/2010 (ASSESSMENT YEAR : 2006-07) RUNWAL DEVELOPERS, 41/12, KARVE ROAD, RUNWAL PLAZA, PUNE 411 004. PAN : AABFR9884J . APPELLANT VS. ASSTT. COMMISSIONER OF INCOME TAX, CIRCLE 3, PUNE. . RESPONDENT ASSESSEE BY : MR. NIKHIL PATHAK DEPARTMENT BY : MR. RAJESH DAMOR DATE OF HEARING : 17-12-2014 DATE OF PRONOUNCEMENT : 30-12-2014 ORDER PER G. S. PANNU, AM THE CAPTIONED APPEAL BY THE ASSESSEE IS DIRECTED AG AINST AN ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-II, PUNE DATED 28.09.2010 WHICH, IN TURN, HAS ARISEN FROM AN ORDER DATED 30.12.2009 PASSED BY THE ASSESSING OFFICER U/S 143(3) R.W.S. 147 OF THE INCOME-TAX ACT , 1961 (IN SHORT THE ACT) PERTAINING TO THE ASSESSMENT YEAR 2006-07. 2. IN THIS APPEAL, THE SOLITARY DISPUTE RAISED BY T HE ASSESSEE IS WITH REGARD TO THE ACTION OF THE INCOME-TAX AUTHORITIES IN DENY ING THE CLAIM FOR DEDUCTION U/S 80-IB(10) OF THE ACT AMOUNTING TO RS.1,20,25,69 9/- IN RESPECT OF THE PROFITS EARNED FROM DEVELOPMENT AND BUILDING OF A HOUSING P ROJECT, NAMED, RUNWAL DAFFODILS. 3. IN BRIEF, THE RELEVANT FACTS GIVING RISE TO THE IMPUGNED DISPUTE CAN BE SUMMARIZED AS FOLLOWS. THE APPELLANT IS A PARTNERS HIP FIRM ENGAGED IN THE ITA NO.1339/PN/2010 BUSINESS OF PROMOTERS AND BUILDERS. THE ASSESSEE F IRM UNDERTOOK DEVELOPMENT AND BUILDING OF A HOUSING PROJECT, NAME D, RUNWAL DAFFODILS AND WITH RESPECT TO THE PROFITS EARNED FROM SUCH PROJEC T, IT CLAIMED EXEMPTION U/S 80-IB(10) OF THE ACT AMOUNTING TO RS.1,20,25,699/-. 4. THE PROJECT OF THE ASSESSEE COMMENCED ON 12.12.2 003. THE ASSESSING OFFICER WAS OF THE VIEW THAT THE PROJECT OF THE ASSESSEE DID NOT COMPLY WITH THE CONDITIONS PRESCRIBED IN CLAUSE (A) TO SECTION 80-IB(10) OF THE ACT READ WITH EXPLANATION (II) THEREOF. AS PER THE ASSESSING OFFICER, THE CONSTRUCTION OF THE PROJECT WAS TO BE COMPLETED BY 31.03.2008 AND IN TERMS OF EXPLANATION (II) OF CLAUSE (A) TO SECTION 80-IB(10) OF THE ACT, THE DATE ON WHICH THE COMPLETION CERTIFICATE IS ISSUED BY THE LOCAL A UTHORITY IS TO BE TAKEN AS THE DATE OF COMPLETION. IN THE PRESENT CASE, ACCORDING TO THE ASSESSING OFFICER, ASSESSEE DID NOT OBTAIN THE COMPLETION CERTIFICATE FROM THE LOCAL AUTHORITY I.E. PUNE MUNICIPAL CORPORATION (PMC) ON OR BEFORE 31.03 .2008. THEREFORE, THE ASSESSING OFFICER DISALLOWED ASSESSEES CLAIM FOR D EDUCTION U/S 80-IB(10) OF THE ACT AMOUNTING TO RS.1,20,25,699/-. THE AFORESA ID ACTION OF THE ASSESSING OFFICER HAS ALSO BEEN AFFIRMED BY THE CIT(A), AGAIN ST WHICH ASSESSEE IS IN APPEAL BEFORE US. 5. BEFORE US, THE LD. REPRESENTATIVE FOR THE ASSESS EE VEHEMENTLY POINTED OUT BY REFERRING TO THE SUBMISSIONS MADE BEFORE THE ASSESSING OFFICER, WHICH ARE REPRODUCED IN THE ASSESSMENT ORDER, THAT ASSESS EE HAD DULY APPLIED FOR OBTAINING OF OCCUPANCY CERTIFICATE FROM PMC BUT THE SAME WAS NOT ISSUED BY PMC FOR THEIR INTERNAL REASONS. FACTUALLY, IT IS P OINTED OUT THAT THE PROJECT OF THE ASSESSEE CONSISTED OF 56 FLATS AND 7 ROW HOUSES AND THE CONSTRUCTION OF ALL OF THEM WAS COMPLETED AND IN-FACT POSSESSION WA S HANDED-OVER TO THE RESPECTIVE BUYERS. THE LD. REPRESENTATIVE ALSO POI NTED OUT THAT THE PMC WAS LEVYING MUNICIPAL TAXES IN RESPECT OF EACH OF THE R ESIDENTIAL UNIT AND THE SAME ITA NO.1339/PN/2010 WAS BEING DONE IN THE NAME OF THE CONCERNED OWNERS. ASSESSEE ALSO RELIED UPON THE ELECTRICITY BILLS AND THE POSSESSION DOCUM ENTS TO PROVE THAT THE BUYERS OF THE FLATS WERE INDEED USING THE FLATS AND THE SAME COULD HAVE BEEN POSSIBLE ONLY AFTER COMPLETION OF THE PROJECT. THE LD. REPRESENTATIVE SUBMITTED THAT THE AFORESAID ASSERTIONS OF THE ASSE SSEE HAVE NOT BEEN DISPUTED BUT THE CLAIM OF DEDUCTION U/S 80-IB(10) O F THE ACT HAD BEEN REJECTED MERELY BECAUSE THE PMC DID NOT ISSUE THE OCCUPANCY CERTIFICATE ON OR BEFORE 31.03.2008. IN THIS CONTEXT, REFERENCE HAS ALSO BE EN MADE TO THE JUDGEMENT OF THE HONBLE DELHI HIGH COURT IN THE CASE OF CIT VS. CHD DEVELOPERS LTD., (2014) 362 ITR 177 (DELHI) FOR THE PROPOSITION THAT THE REQUIREMENT OF ISSUANCE OF COMPLETION CERTIFICATE BY THE LOCAL AUTHORITY BE FORE THE STIPULATED DATE CANNOT BE INSISTED UPON IN THE PRESENT CASE SINCE THE PROJ ECT OF THE ASSESSEE HAD COMMENCED PRIOR TO THE AMENDMENT INSERTED BY THE FI NANCE (NO.2) ACT OF 2004, W.E.F. 01.04.2005 IN TERMS OF EXPLANATION (II ) TO SECTION 80-IB(10)(A) OF THE ACT WHICH REQUIRED PRODUCTION OF COMPLETION CER TIFICATE. 6. ON THE OTHER HAND, THE LD. DEPARTMENTAL REPRESEN TATIVE SUBMITTED THAT THE REQUIREMENT OF COMPLETION OF CONSTRUCTION WITHI N THE STIPULATED TIME CONTAINED IN CLAUSE (A) TO SECTION 80-IB(10) OF THE ACT IS TO BE UNDERSTOOD OF BEING FULFILLED ONLY ON THE DATE ON WHICH THE COMPL ETION CERTIFICATE IN RESPECT OF THE HOUSING PROJECT IS ISSUED BY THE LOCAL AUTHORIT Y. ACCORDING TO HIM, IN PRESENT CASE, THE STIPULATED DATE OF COMPLETION OF CONSTRUCTION IS 31.03.2008 AND IN RESPECT OF SUCH PROJECT, COMPLETION CERTIFIC ATE HAS NOT BEEN ISSUED BY THE PMC ON OR BEFORE 31.03.2008 AND THEREFORE THE L OWER AUTHORITIES WERE JUSTIFIED IN DISALLOWING THE DEDUCTION CLAIMED BY T HE ASSESSEE U/S 80-IB(10) OF THE ACT. 7. WE HAVE CAREFULLY CONSIDERED THE RIVAL SUBMISSIO NS. THE CRUX OF THE CONTROVERSY IN THE PRESENT APPEAL RELATES TO THE PR OVISIONS OF SUB-CLAUSE (I) OF ITA NO.1339/PN/2010 CLAUSE (A) TO SECTION 80-IB(10) OF THE ACT READ WIT H EXPLANATION (II) THEREOF. AS PER THE REVENUE, HAVING REGARD TO SUB-CLAUSE (I) OF CLAUSE (A) TO SECTION 80- IB(10) OF THE ACT, THE CONSTRUCTION OF THE HOUSING PROJECT WAS TO BE COMPLETED ON OR BEFORE 31.03.2008. SUB-CLAUSE (I) OF CLAUSE (A) TO SECTION 80-IB(10) OF THE ACT PRESCRIBES THAT WHERE A HOUSING PROJECT IS APPROVED ON OR BEFORE 01.04.2004 THEN THE DEVELOPMENT AND CONSTRUCTION OF SUCH HOUSING PROJECT SHALL BE COMPLETED ON OR BEFORE 31.03.2008. EXPLAN ATION (II) BELOW CLAUSE (A) OF SECTION 80-IB(10) OF THE ACT PROVIDES THAT THE D ATE OF COMPLETION OF CONSTRUCTION OF THE HOUSING PROJECT SHALL BE TAKEN TO BE THE DATE ON WHICH THE COMPLETION CERTIFICATE IN RESPECT OF SUCH HOUSING P ROJECT IS ISSUED BY THE LOCAL AUTHORITY. 8. IN THE PRESENT CASE, IT IS AN ADMITTED POSITION THAT THE HOUSING PROJECT OF THE ASSESSEE KNOWN AS RUNWAL DAFFODILS COMMENCED WITH EFFECT FROM 12.12.2003 AND THEREFORE CONSTRUCTION OF SUCH A HOU SING PROJECT WAS REQUIRED TO BE COMPLETED ON OR BEFORE 31.03.2008 AS STIPULAT ED IN SUB-CLAUSE (I) OF CLAUSE (A) TO SECTION 80-IB(10) OF THE ACT. IT IS ALSO NOT DENIED BY THE ASSESSEE THAT THE RELEVANT COMPLETION CERTIFICATE H AS NOT BEEN ISSUED BY THE LOCAL AUTHORITY I.E. PMC ON OR BEFORE 31.03.2008. HOWEVER, THE CASE SETUP BY THE ASSESSEE IS THAT THE PROJECT OF THE ASSESSEE WA S APPROVED AND IT COMMENCED ON 12.12.2003, WHICH PERTAINS TO A PERIOD PRIOR TO 01.04.2005 I.E. THE DATE ON WHICH THE AMENDMENT WHICH INSISTED ON P RODUCTION OF COMPLETION CERTIFICATE WAS BROUGHT INTO FORCE. IN ORDER TO AP PRECIATE THE AFORESAID PLEA OF THE ASSESSEE, WE MAY REFER TO THE PROVISIONS OF SEC TION 80-IB(10) OF THE ACT AS IT STOOD PRIOR TO THE AMENDMENT BROUGHT BY THE FINA NCE (NO.2) ACT OF 2004, W.E.F. 01.04.2005 :- (10) THE AMOUNT OF PROFITS IN CASE OF AN UNDERTAKI NG DEVELOPING AND BUILDING HOUSING PROJECTS APPROVED BEFORE THE 31ST DAY OF MARCH, 2005 BY A LOCAL AUTHORITY, SHALL BE HUNDRED PER CENT. OF THE PROFITS DERIVED IN ANY PREVIOUS YEAR RELEVANT TO ANY ASSESSMENT YEAR FROM SUCH HOUS ING PROJECT IF, - ITA NO.1339/PN/2010 (A) SUCH UNDERTAKING HAS COMMENCED OR COMMENCES DEV ELOPMENT AND CONSTRUCTION OF THE HOUSING PROJECT ON OR AFTER TILE 1ST DAY OF OCTOBER, 1998; (B) THE PROJECT IS ON THE SIZE OF A PLOT OF LAND WH ICH HAS MINIMUM AREA OF ONE ACRE; AND (C) THE RESIDENTIAL UNIT HAS A MINIMUM BUILT-UP ARE A OF ONE THOUSAND SQUARE FEET WHERE SUCH RESIDENTIAL UNIT IS SITUATED WITHIN THE CITIES OF DELHI OR MUMBAI OR WITHIN TWENTY-FIVE KILOMETRES FR OM THE MUNICIPAL LIMITS OF THESE CITIES AND ONE THOUSAND AND FIVE HU NDRED SQUARE FEET AT ANY OTHER PLACE. 9. SUBSEQUENTLY, FINANCE (NO.2) ACT OF 2004, WHICH WAS BROUGHT INTO FORCE W.E.F. 01.04.2005, AMENDED THE PROVISIONS OF SECTIO N 80-IB(10) OF THE ACT; AND, POST-AMENDMENT SECTION 80-IB(10) OF THE ACT RE AD AS UNDER :- (10) THE AMOUNT OF DEDUCTION IN THE CASE OF AN UND ERTAKING DEVELOPING AND BUILDING HOUSING PROJECTS APPROVED B EFORE THE 31ST DAY OF MARCH, 2008 BY A LOCAL AUTHORITY SHALL BE HUNDRED P ER CENT. OF THE PROFITS DERIVED IN THE PREVIOUS YEAR RELEVANT TO ANY ASSESS MENT YEAR FROM SUCH HOUSING PROJECT IF, - (A) SUCH UNDERTAKING HAS COMMENCED OR COMMENCES DEV ELOPMENT AND CONSTRUCTION OF THE HOUSING PROJECT ON OR AFTER THE 1ST DAY OF OCTOBER, 1998 AND COMPLETES SUCH CONSTRUCTION - (I) IN A CASE WHERE A HOUSING PROJECT HAS BEEN APPR OVED BY THE LOCAL AUTHORITY BEFORE THE 1ST DAY OF APRIL, 2004, ON OR BEFORE THE 31ST DAY OF MARCH, 2008; (II) IN A CASE WHERE A HOUSING PROJECT HAS BEEN, OR , IS APPROVED BY THE LOCAL AUTHORITY ON OR AFTER THE 1ST DAY OF APRIL, 2 004 BUT NOT LATER THAN THE 31ST DAY OF MARCH, 2005, WITHIN FOUR YEARS FROM THE END OF THE FINANCIAL YEAR IN WHICH THE HOUSING PROJECT IS APPROVED BY THE LOCAL AUTHORITY. (III) IN A CASE WHERE A HOUSING PROJECT HAS BEEN AP PROVED BY THE LOCAL AUTHORITY ON OR AFTER THE 1ST DAY OF APRIL, 2005, W ITHIN FIVE YEARS FROM THE END OF THE FINANCIAL YEAR IN WHICH THE HOUSING PROJECT IS APPROVED BY THE LOCAL AUTHORITY. EXPLANATION- FOR THE PURPOSES OF THIS CLAUSE,- (I) IN A CASE WHERE THE APPROVAL IN RESPECT OF THE HOUSING PROJECT IS OBTAINED MORE THAN ONCE, SUCH HOUSING PROJECT SHALL BE DEEMED TO HAVE BEEN APPROVED ON THE DATE ON WHICH THE BUILDING PLAN OF SUCH HOUSING PROJECT IS FIRST APPROVED BY THE LOCAL AUTHORITY; (II) THE DATE OF COMPLETION OF CONSTRUCTION OF THE HOUSING PROJECT SHALL BE TAKEN TO BE THE DATE ON WHICH THE COMPLETION CER TIFICATE IN RESPECT OF SUCH HOUSING PROJECT IS ISSUED BY THE LOCAL AUTHORITY; (B) THE PROJECT IS ON THE SIZE OF A PLOT OF LAND WH ICH HAS A MINIMUM AREA OF ONE ACRE: PROVIDED THAT NOTHING CONTAINED IN CLAUSE (A) OR CL AUSE (B) SHALL APPLY TO A HOUSING PROJECT CARRIED OUT IN ACCORDANCE WITH A SC HEME FRAMED BY THE CENTRAL GOVERNMENT OR A STATE GOVERNMENT FOR RECONS TRUCTION OR ITA NO.1339/PN/2010 REDEVELOPMENT OF EXISTING BUILDINGS IN AREAS DECLAR ED TO BE SLUM AREAS UNDER ANY LAW FOR THE TIME BEING IN FORCE AND SUCH SCHEME IS NOTIFIED BY THE BOARD IN THIS BEHALF; (C) THE RESIDENTIAL UNIT HAS A MAXIMUM BUILT-UP ARE A OF ONE THOUSAND SQUARE FEET WHERE SUCH RESIDENTIAL UNIT IS SITUATED WITHIN THE CITIES OF DELHI OR MUMBAI OR WITHIN TWENTY-FIVE KILOMETRES FR OM THE MUNICIPAL LIMITS OF THESE CITIES AND ONE THOUSAND AND FIVE HUNDRED SQUA RE FEET AT ANY OTHER PLACE; (D) THE BUILT-UP AREA OF THE SHOPS AND OTHER COMMER CIAL ESTABLISHMENTS INCLUDED IN THE HOUSING PROJECT DOES NOT EXCEED THREE PER CENT. OF THE AGGREGATE BUILT-UP AREA OF THE HOUSING PROJECT OF FIVE THOUSAND SQUARE FEET, WHICHEVER IS HIGHER. 10. IN THE INSTANT ASSESSMENT YEAR I.E. 2006-07, TH E ASSESSING OFFICER HAS SOUGHT TO DISALLOW THE DEDUCTION CLAIMED BY THE ASS ESSEE ON THE GROUND THAT THE COMPLETION CERTIFICATE IN TERMS OF EXPLANATION (II) HAS NOT BEEN OBTAINED. A SIMILAR SITUATION HAD ARISEN BEFORE THE HONBLE DEL HI HIGH COURT IN THE CASE OF CHD DEVELOPERS LTD. (SUPRA). IN THE CASE BEFORE TH E HONBLE DELHI HIGH COURT, THE PROJECT OF THE ASSESSEE WAS APPROVED ON 16.03.2005 AND THE ASSESSING OFFICER PROCEEDED TO DISALLOW THE DEDUCTI ON CLAIMED FOR ASSESSMENT YEAR 2007-08 ON THE GROUND THAT THE COMPLETION CERT IFICATE IN TERMS OF EXPLANATION (II) WAS NOT GRANTED WITHIN THE STIPULA TED PERIOD I.E. ON OR BEFORE 31.03.2009. NOTABLY, IN THE CASE BEFORE THE HONBL E DELHI HIGH COURT, THE TIME-LIMIT FOR COMPLETION OF CONSTRUCTION OF THE HO USING PROJECT WAS GOVERNED BY SUB-CLAUSE (II) OF CLAUSE (A) TO SECTION 80-IB(1 0) OF THE ACT. THE HONBLE DELHI HIGH COURT NOTED THAT SINCE THE PROJECT OF TH E ASSESSEE WAS APPROVED PRIOR TO 2005 I.E. BEFORE THE AMENDMENT WHICH INSIS TED ON ISSUANCE OF COMPLETION CERTIFICATE BY THE END OF FOUR YEARS WAS BROUGHT INTO FORCE, THE CLAIM OF DEDUCTION COULD NOT BE DENIED FOR THE SAID REASON. THE CASE OF THE ASSESSEE BEFORE US IS FULLY COVERED BY THE RATIO OF THE JUDGEMENT OF THE HONBLE DELHI HIGH COURT IN THE CASE OF CHD DEVELOP ERS LTD. (SUPRA). IN THIS BACKGROUND, WE THEREFORE FIND NO REASONS TO UPHOLD THE OBJECTION OF THE LOWER AUTHORITIES IN ORDER TO DISALLOWANCE CLAIMED U/S 80 -IB(10) OF THE ACT. ITA NO.1339/PN/2010 11. FACTUALLY SPEAKING, ASSESSEE HAS CONSISTENTLY C ANVASSED BEFORE THE LOWER AUTHORITIES AS WELL AS BEFORE US THAT THE CON STRUCTION OF THE PROJECT WAS COMPLETE IN ALL RESPECTS BY 31.03.2008. IN-FACT, B EFORE THE CIT(A) ASSESSEE ALSO POINTED OUT THAT IT HAD MADE AN APPLICATION TO THE PMC FOR ISSUANCE OF COMPLETION CERTIFICATE BEFORE 31.03.2008. IT WAS, THUS, CONTENDED THAT THE CONSTRUCTION OF THE PROJECT WAS COMPLETE WITHIN THE STIPULATED PERIOD AND THE SAME SHOULD BE TAKEN AS A DUE COMPLIANCE WITH THE R EQUIREMENTS OF CLAUSE (A) TO SECTION 80-IB(10) OF THE ACT. WE FIND THAT THE LOWER AUTHORITIES HAVE REPRODUCED THE SUBMISSIONS OF THE ASSESSEE IN THIS REGARD IN THEIR RESPECTIVE ORDERS. THE ASSESSING OFFICER HAS REPRODUCED THE S UBMISSIONS OF THE ASSESSEE IN PARA 4 OF THE ASSESSMENT ORDER. THE AS SESSING OFFICER HAS ALSO NOTED THAT ASSESSEE FURNISHED THE COPY OF ELECTRICI TY BILLS AND POSSESSION DOCUMENTS IN RESPECT OF THE FLAT OWNERS, WHICH FORM ED A PART OF WRITTEN SUBMISSIONS. ASSESSEE HAD ASSERTED BEFORE THE ASSE SSING OFFICER THAT THE PMC WAS LEVYING MUNICIPAL TAXES IN RESPECT OF EACH OF THE FLAT IN THE PROJECT AND SUCH LEVIES WERE IN THE NAME OF THE RESPECTIVE OWNERS. THE MSEB RECEIPTS AND POSSESSION DOCUMENTS WERE ALSO FURNISH ED TO THE ASSESSING OFFICER. BEFORE THE CIT(A) ASSESSEE ALSO POINTED O UT THAT WHILE MAKING APPLICATION FOR ISSUANCE OF COMPLETION CERTIFICATE TO PMC, ASSESSEE HAD TAKEN ALL THE NECESSARY STEPS REQUIRED TO BE DONE BEFORE SEEKING THE COMPLETION CERTIFICATE, NAMELY, OBTAINING OF NOCS FROM VARIOUS DEPARTMENTS LIKE, FIRE DEPARTMENT, GARDEN DEPARTMENT, ENCROACHMENT DEPARTM ENT, CONSTRUCTION AND DEVELOPMENT CONTROL DEPARTMENT, ETC.. ON THIS BASIS, IT WAS SOUGHT TO BE CONTENDED THAT THE NON-ISSUANCE OF THE COMPLETION C ERTIFICATE BY THE PMC BEFORE 31.03.2008 WAS FOR REASONS BEYOND THE CONTRO L OF THE ASSESSEE. 12. WE FIND THAT ALL THE AFORESAID FACTUAL ASSERTIO NS MADE BY THE ASSESSEE HAVE NOT BEEN CONTROVERTED EITHER BY THE ASSESSING OFFICER OR BY THE CIT(A). IN THE ABSENCE OF ANY MATERIAL TO CONTROVERT THE AS SERTIONS OF THE ASSESSEE ITA NO.1339/PN/2010 THAT THE CONSTRUCTION WAS COMPLETED BEFORE THE STIP ULATED DATED I.E. 31.03.2008, WE FIND NO REASONS TO BELIE THE SAME. THEREFORE, ON FACTS, THE POSITION CONSISTENTLY CANVASSED BY THE ASSESSEE TO THE EFFECT THAT THE CONSTRUCTION OF THE PROJECT WAS COMPLETE BEFORE THE STIPULATED DATE OF 31.03.2008 HAS TO PREVAIL. WE HOLD SO. 13. THUS, HAVING REGARD TO THE POSITION OF LAW AND FACTS OF THE PRESENT CASE AS DISCUSSED ABOVE, WE SET-ASIDE THE ORDER OF THE C IT(A) AND DIRECT THE ASSESSING OFFICER TO ALLOW ASSESSEES CLAIM FOR DED UCTION U/S 80-IB(10) OF THE ACT AMOUNTING TO RS.1,20,25,699/- IN RESPECT OF THE PROFITS OF THE HOUSING PROJECT, NAMELY, RUNWAL DAFFODILS. 14. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWE D. ORDER PRONOUNCED IN THE OPEN COURT ON 30 TH DECEMBER, 2014. SD/- SD/- (R.S. PADVEKAR) (G.S. PANNU) JUDICIAL MEMBER ACCOUNTANT MEMBER PUNE, DATED: 30 TH DECEMBER, 2014. SUJEET COPY OF THE ORDER IS FORWARDED TO : - 1) THE ASSESSEE; 2) THE DEPARTMENT; 3) THE CIT(A)-II, PUNE; 4) THE CIT-II, PUNE; 5) THE DR A BENCH, I.T.A.T., PUNE; 6) GUARD FILE. BY ORDER //TRUE COPY// ASSISTANT REGISTRAR I.T.A.T., PUNE