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2015 (2) TMI 198 - AT - Income TaxDeduction u/s. 80IB(10)- Assessing Officer has disallowed the claim of assessee on the ground that assessee firm is not the owner of land at relevant point of time on which project was constructed and permission from local authority was not accorded in the name of assessee firm - whether the legal relationship between the assessee and the end user of the units was that of ‘work contract’? - Held that:- For the purpose of claiming deduction u/s 80IB(10) of the Act, it is not necessary for assessee to own the land. Such condition is not mentioned in the relevant section. In view of above discussion, this ground as taken by Assessing Officer was not justified in rejecting the claim of assessee because in this case, housing project has been approved by the local authority on 24-05-2004 and plan was passed on 02-08-2004. The size of plot of land was 12,141.59 sq.mtrs. which was more than 1 acre. Built-up area of each unit did not exceed 1500 sq.fts. The undertaking starting construction in the financial year 2004-05 and the same was completed in F.Y. 2007-08. Assessee firm developed housing project and entire risk with regard to such housing project was to be borne by it only. Accordingly, Assessing Officer was not justified in denying the claim u/s. 80IB(10) and same has rightly been granted by CIT(A). This reasoned finding of CIT(A) needs no interference from our side. - Decided in favour of assessee.
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