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2014 (12) TMI 19 - HC - Income TaxAllowability of deduction u/s 80IB(10) and 80IB(1) Works contract - Whether the Tribunal was right in law in allowing the deduction u/s 80IB(10) r.w.s. 80IB(1) claimed by the assessee without appreciating that the nature of agreement between the assessee and the unit purchasers shows that it was only a "works contract", the agreement was entered into before the construction was completed and not after the flat or unit is sold and also the assessee has not borne any risk through this agreement Held that:- In Commissioner of Income-tax Versus Radhe Developers [2011 (12) TMI 248 - GUJARAT HIGH COURT] it has been held that Section 80IB(10) provides for deductions to an undertaking engaged in the business of developing and constructing housing projects under certain circumstances - It does not provide that the land must be owned by the assessee seeking such deductions - it can be seen from the terms and conditions that the assessee had taken full responsibilities for execution of the development projects and have not acted only as a works contractor. The assessee had, in part performance of the agreement to sell the land was given possession and had also carried out the construction work for development of the housing project - Combined reading of Section 2(47)(v) and Section 53A of the Transfer of Property Act leads to conclusion even for limited purpose of Income tax that assessee had satisfied the condition of ownership also - 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 - the meaning assigned to the expression "works contract" in the cannot be imported while construing the meaning of the expression in the context of the provisions of the Income Tax Act the order of the Tribunal is upheld Decided against revenue.
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