Chandra Poojari, Accountant Member - This appeal by the assessee is directed against the order of the CIT(A)-III, Hyderabad dated 30.11.2009 for assessment year 2006-07.

2. The first ground in this appeal is with regard to disallowance of deduction u/s. 80IB(10) of the Income-tax Act, 1961 on the reason that there is no completion certificate in respect of housing project carried on by the assessee.

3. Brief facts of the issue are that the assessee company is a builder and engaged in construction of flats. For the A.Y. 2006-07, it has filed the return of income on 30/11/2006 showing an income of Rs. 7,47,150. During scrutiny of the return/ the Assessing Officer noticed that the assessee has received an amount of Rs. 7.3 crores from development and sale of flats, in addition to other income of Rs 4.38 lakhs, on which it has shown profit of Rs. 98,13,125 and the same was claimed as deduction u/s. 80IB(10) of the Act. Explaining such claim of the deduction, the assessee has submitted that it has taken up a venture at M.G. Road/ Secunderabad on development basis and constructed a residential complex on land of 5,500 sq. yards. The sanctioned plan for the project was obtained in Sept