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2016 (4) TMI 588 - AT - Income TaxEligibility of deduction u/s.80IB(10) - denial of claim in the hands of the AOP - Held that:- Since in their own action the revenue in A.Yrs. 2011-12 and 2012-13 has accepted the status of the assessee as AOP and allowed the claim of deduction u/s.80IB(10), therefore, we do not find any reason as to why the claim of the assessee that the agreement between Darode Jog and Associates and Lagad Brothers Developers constitutes an AOP should not be allowed. In view of our above discussion we hold that the agreement between Darode Jog and Associates and Lagad Brothers Developers did constitute an AOP and not a mere Development Agreement. Therefore, the assessee has rightly claimed the status of the assessee as AOP. In view of the above, we set aside the order of the CIT(A) and direct the AO to accept the status of the assessee as AOP. As we have already accepted the grounds raised by the assessee by holding that the Agreement between the Darode Jog and Associates and Lagad Brothers Developers constitute an AOP and not a Development Agreement. Once it is held that the agreement constitutes AOP any amount drawn from the AOP cannot be taxed in the hands of the assessee member. It is only the Joint Venture that has to pay the tax and the assessee is not liable to pay any tax on the amount withdrawn from the Joint Venture. The assessee is also not entitled for any deduction u/s. 80IB(10) and it is the joint venture that is eligible for the deduction u/s.80IB(10). We therefore set aside the order of the CIT(A) and direct the AO to accept the return of income filed.
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