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2014 (5) TMI 708 - HC - Income TaxDeletion of disallowance of deduction u/s 80IB(10) of the Act – Owner of land and development permission not granted - Construction and development of housing project – Held that:- Following Commissioner of Income-tax v. Radhe Developers [2011 (12) TMI 248 - GUJARAT HIGH COURT] - It is true that the title in the land had not yet passed on to the assessee – the title would pass only upon execution of a duly registered sale deed - the term works contract contained in the Act is inclusive definition and includes not merely the works contract as normally understood but it is a wide definition which includes any agreement for carrying out building or construction activity for cash, deferred payment or other valuable consideration - the interpretation was based on not the normal meaning of term “works contract” but on the special meaning assigned to it under the Act itself, which provided for a definition of the inclusive nature - 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.
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