TMI Blog2012 (8) TMI 232X X X X Extracts X X X X X X X X Extracts X X X X ..... ificate issued by the Office of Sub Divisional Officer, the assessee has not only conceived the entire housing scheme but also executed the work as per approved plan. Further, assessee had entered into comprehensive sale agreement with the customers for the purpose of sale of complete residential units. As per the agreement, the possession of residential unit remained with the assessee till final instalment is paid. In view of these facts, we do not find any merit on the part of AO’s action for treating the assessee merely as a contractor rather than a Developer. However, since revenue alleged that said project allowed commercial complex, we restore this aspect to the file of the AO to physically verify the project and if he finds that n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disallowance against which the assessee is in appeal before us. 5. We have considered the rival submissions and found from record that the assessee is a partnership firm engaged in the business of development of residential housing projects. During the relevant assessment year, the assessee has continued development of a residential project at Kolar Road, Bhopal, named as Vijay Vilas . The residential project was approved by Gram Panchayat Nayapura vide approval no. 1793 dated 18.10.2005. The project basically consists of construction of 31 Duplex Houses. The approval order and approved project map was submitted on record. The assessee claimed deduction of Section 80IB(10) of Rs. 6,47,250/- on this project. At the time of assessment, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h the customers, the assessee was required to undertake construction of the residential unit as a whole. It appears that the Assessing Officer has mis-interpreted various agreements entered by the assessee with its customers. Not only as per project approval letter but also as per the certificate dated 31st October, 2009, issued by the Office of Sub Divisional Officer, the assessee has not only conceived the entire housing scheme but also executed the work as per approved plan. The assessee had entered into comprehensive sale agreement with the customers for the purpose of sale of complete residential units. It is a normal trade practice to receive payment in instalments as per the progress of the project, as most of the customers got house ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... leased, permission was sought only for residential house on these 5 plots (Kindly refer permission at P. B. Pg.37) Thus no commercial was made in the entire colony. 9. Even during the course of hearing before us, the ld. Authorized Representative has placed on record the completed building plant, wherein no commercial unit was found to be constructed by the assessee. Both the lower authorities have brushed aside this contention of the ld. Authorized Representative and they had merely relied on the plan which was original approved, whereas the assessee has not finally constructed any commercial unit. In the interest of justice and fair play, we restore this aspect to the file of the Assessing Officer to physically verify the project and i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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