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2016 (7) TMI 818 - AT - Income TaxDisallowance u/s 80IB(10) - treatment to assessee as developer - Held that:- A bare reading of the agreement would suggest that the assessee had borne the risk and also entitled for the reward. Clause-4 of the agreement duly authorizes the assessee to register individuals, firms or companies as a member of the Society and determine the price for unit registered for them. The emphasis of the ld.AO towards clause-9 of the agreement is concerned, it contemplates remuneration at the rate of 15% on the contribution collected from the members. The ld.CIT(A) has considered this aspect and held that it is not a very substantial aspect for determining character of assessee as a contractor or developer. It is pertinent to mention here that clause (4) authorizes the assessee to register new member and settle price for units registered for them. This authority to the assessee is in addition to already existing members. Therefore, if we look the details in the light of the above agreement, then, it would reveal that the CIT(A) has rightly treated the assessee as developer and rightly allowed the deduction under section 80IB(10) of the Income Tax Act - Decided in favour of assessee.
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