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2014 (5) TMI 221 - AT - Income TaxDisallowance of deduction u/s 80IB(10) of the Act – Conditions not fulfilled – Held that:- Following M/s. Satsang Developers Versus ACIT, Circle-2(2), Baroda [2014 (5) TMI 184 - ITAT AHMEDABAD] - what is sought to be purchased by the buyer is the ownership of the specified unit and registration of flat in semi-finished condition is only to facilitate the convenience of the parties and agreement for development and completion of balance work in relation to the flats is only an incidental formality and this cannot be viewed as fatal to the claim of the assessee for deduction u/s.80-IB(10) of the Act - the entire work from the stage of the commencement to the stage of making the residential unit habitable have been carried out by the assessee only – thus, the assessee is eligible for deduction u/s.80-IB(l 0) of the Act – Decided in favour of Assessee. Allowability of deduction u/s 80IB(10) of the Act – Legal relationship between assessee and the end user of the units was that of works contract not appreciated – Held that:- Following CIT vs. Radhe Developers [2011 (12) TMI 248 - GUJARAT HIGH COURT] - the assessee was entitled to the benefit u/s 80-IB (10) even where the title of the lands had not passed on to the assessee and in some cases, the development permissions may also have been obtained in the name of the original land owner - ownership of land is not a necessary condition for claiming the deduction u/s 80IB(10) - Assessee has acquired dominant control over the land, Assessee is responsible for incurring all the expenses and taking all the risks involved - Assessee is not a contractor - Revenue could not controvert the findings of CIT(A) – thus, there is no reason to interfere in the order of the CIT(A) – Decided against Revenue.
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