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2018 (3) TMI 1979 - AT - Income TaxDeduction u/s. 80IB (10) - Denial of deduction as assessee treated as contractor of the unit owner - there were two separate agreements for sale of plot and construction on the plot and there was no sale of constructed house and thus, assessee had merely acted as a contractor of the unit owner in respect of construction of house and therefore, not entitled to deduction u/s. 80IB(10) of the Act because the sub section does not apply to a developer of a plotting scheme or a contractor - HELD THAT:- In the present case, the assessee by cutting land into independent plots on different sized sold the land thereafter by entering into an independent construction agreement with individual plot owners undertook construction work. AO held that after selling plots the assessee seized to having a status of developer of the project and therefore, became ineligible for claiming deduction u/s. 80IB(10) of the Act. But these contentions of the AO does not stand on the merits in view of the decisions of Hon’ble Jurisdictional High Court as respectfully noted above. The conclusion drawn by the ld. CIT(A) is quite correct and we are unable to see any perversity or any other valid reason to interfere with the same. Thus, the same is confirmed. Accordingly, sole ground of the Revenue being devoid of merits is dismissed.
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