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2012 (12) TMI 328 - AT - Income TaxClaim of deduction u/s. 80 IB (10) disallowed by AO - CIT(A) allowed the claim - Held that:- As decided in CIT Versus Radhe Developers [2011 (12) TMI 248 - GUJARAT HIGH COURT] section 80IB(10) provides for deductions to an undertaking engaged in the business of developing and constructing housing projects under certain circumstances. It does not provide that the land must be owned by the assessee seeking such deductions - The relevant terms of development agreement are to be examined so as to ascertain the terms on which the assessee was granted right of construction of a housing project & on the basis of the terms and conditions, it has to be ascertained whether it was a “work contract” or a “Development Contract”& whether under the agreement the assessee had been given full authority to develop the land & AO has to examine about the “profit” or “loss” arising from the said project. CIT(A) has passed the order finding justification only on the issue of ownership of the land based on the development agreement and has unjustly allowed the claim of the assessee - set aside the order of the learned CIT(A) and remit back the case to the file of ht e learned CIT(A) to pass appropriate order - in favour of Revenue.
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