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2014 (4) TMI 1042 - HC - Income TaxDeduction u/s 80IB(10) of the Act Profits from sale of housing projects Held that:- The decision in CIT v. Radhe Developers [2011 (12) TMI 248 - GUJARAT HIGH COURT] followed - the assessee had taken full responsibilities for execution of the development projects - the assessee had full authority to develop the land as per his discretion - The assessee could engage professional help for designing and architectural work - Assessee would enroll members and collect charges - Profit or loss which may result from execution of the project belonged entirely to the assessee - the assessee had developed the housing project - 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. Sale of unutilized FSI Construction done only on the portion of FS available Held that:- Marginal underutilization of FSI certainly cannot be a ground for rejecting the claim u/s 80IB(10) of the Act - Even if there has been considerable underutilization, if the assessee can point out any special grounds why the FSI could not be fully utilized, the case may stand on a different footing - in cases where the utilization of FSI is way short of the permissible area of construction, looking to the scheme of section 80IB(10) of the Act and the purpose of granting deduction on the income from development of housing projects envisaged, bifurcation of profits arising out of such activity and that arising out of the net sell of FSI must be resorted to - none of the assessees have made any special ground for non-utilization of the FSI- Decided in favour of Revenue.
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