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2014 (1) TMI 914 - AT - Income TaxDeduction u/s 80IB(10) of the Act – Works contract - Held that:- The assessee has to appoint contractor and other agencies for execution of work - it has to appoint architect and get the plan prepare from them and get it approved for the local authority - The developers are also entitled to enroll the members to receive money from them to issue receipts from them and to give necessary documents and other certificates to members to obtaining loans - the developer is entitled to develop the said land and for that he has to bare all expenses for construction and for obtaining other permission etc. - The details of payment to the landlord is also appearing on the asset side of balance sheet - payment to the land lord is not an essential condition for granting deduction u/s 80IB of the Act - There is no such mention in the Act that entire construction of the land should be paid to the land lord. The decision in Income-tax Officer, Ward-2(5), Ahmedabad Versus Shakti Corporation [2008 (11) TMI 436 - ITAT AHMEDABAD] followed - The land owners were entitled to a fixed consideration of Rs. 11 per square feet and the housing project was to be developed by the assessee at his own cost and risk - Assessee had full control over development of land and sale of tenements - CIT(A) has rightly allowed the deduction u/s 80IB(10) of the Act to the assessee – Decided against Revenue.
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