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2014 (3) TMI 804 - AT - Income TaxDisallowance of deduction u/s 80IB of the Act - Business of Developing & Building Housing Projects and sale of flats and villas – Approval taken from the local authority – Held that:- The decision in Commissioner of Income-tax Versus Radhe Developers [2011 (12) TMI 248 - GUJARAT HIGH COURT] followed - the terms of agreement of sale entered into between the parties the condition must be revealed that the owner of the land has received part of sale consideration and in lieu thereof he had granted development permission to the assessee - this condition is satisfied that the assessee developer was given possession and assessee has undertaken the construction as per plans approved by Local Authority - The assessee developer has paid fees to the Architects and Engineers. The assessee has carried out and admitted the members - The land owner has agreed to give necessary signature, agreements, and even power of attorney to facilitate the work of the developer - the assessee has undertaken the entire task of development, construction and sale of the housing units to be located on the land belonging the original land owners - as per the sale agreement the developer was given full power of attorney and the land owner was given Rs. 95 lakhs in consideration of the property – the assessees were entitled to the benefit u/s 80IB(10) even where the title of the lands had not passed on to the assessees and in some cases, the development permissions may also have been obtained in the name of the original land owners – Decided against Revenue.
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