D. K Construction vs. ITO

Parties Involved

Facts Summary

D. K Construction, the appellant, filed an appeal against the order dated 03.12.2021 of the Commissioner of Income Tax (Appeal) Bhopal for the Assessment Year 2014-15. The primary issue was the disallowance of a deduction claim under Section 80IB(10) of the Income Tax Act regarding the project D.K Honey Homes. The assessee claimed that the construction of the housing project was completed on 21.03.2008, but the completion certificate was issued by local authorities on 24.12.2010, mentioning the completion date as 31.03.2008. The assessee argued that the date mentioned in the completion certificate was within the prescribed time limit under Section 80IB(10)(a)(i) of the Act. However, the Commissioner of Income Tax (Appeal) upheld the disallowance based on the decision of the High Court in the case of CIT vs. Global Reality, which held that the issuance of the completion certificate after the cutoff date does not fulfill the condition specified in Section 80IB(10).…

Legal Issues

• 1. Disallowance of claim of deduction u/s 80IB(10) in respect of project D.K. Honey Homes.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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