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2014 (4) TMI 76 - HC - Income TaxDeduction u/s 80IB(10) r.w. Section 80IB(1) of the Act Approval and completion certificate granted to landowner - Whether the Tribunal was right in law in allowing deduction u/s 80IB(10) r.w.s. 80IB(1) to the assessee when the approval by local authority as well as completion certificate was not granted to the assessee but to the landowner Held that:- The decision in Commissioner of Income tax v. Radhe Developers 2011 (12) TMI 248 - GUJARAT HIGH COURT] followed - While interpreting the statute nothing can be read into the provisions which has not been provided by the Legislature - The condition which is not made part of Section 80IB(10) of the Act, namely that of owning the land, which the assessee develops, cannot be supplied by any purported legislative intent the title in the land had not yet passed on to the assessee - It is equally true that such title would pass only upon execution of a duly registered sale deed - the ownership has been understood differently in different context - For the limited purpose of deduction u/s 80IB(10) of the Act, the assessee had satisfied the condition of ownership also, even if it was necessary - the Tribunal committed no error in holding that the assessees were entitled to the benefit u/s 80IB(10) of the Act 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. Profit derived from sale of unutilized FSI - Whether the Tribunal was right in law in allowing deduction u/s 80IB(10) r.w.s. 80IB(1) to the assessee on profit derived from sale of unutilized FSI not being the element of profits derived from the business activity of development and construction of the housing project relating to the sale of tenements Held that:- What is available for deduction under section 80IB(10) of the Act is the profit of an undertaking derived from developing and building a housing project. Mere sale of open land or unused FSI as part of the housing project where utilization of the FSI is way short of permissible limits cannot be said to have been derived from such housing project. Terms derived from, arising out of and attributable to are often times used in the context of income tax in different connotation Decided in favor of revenue.
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