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2019 (2) TMI 982 - AT - Income TaxDeduction u/s 80IB(10) - revenue has argued that the CIT(A) has failed to comply the circular of CBDT205/3/2001/ITA-II Ft. 4.5.2001 and allowed the claim of the assessee u/s 80IB(10) of the Act wrongly - Held that:- Claim of the assessee has been allowed by CIT(A) on the basis of the decision of earlier year for the A.Y. 2010-11 to 2012-13 decided by CIT(A), therefore, the claim of the assessee has rightly been allowed. The development rights acquired by the appellant firm was not a collusive transaction for the reasons - a. Just because M/s Kashish Park Realtors Pvt Ltd. a. partner of the appellant firm had initially intended to purchase the TDR from the landlord and had also made a payment of ₹ 1.10 cr to the landlord before the appellant jinn was constituted, does not in any way lead to the conclusion that the transaction entered into by the appellant with the landlord was a collusive transaction. b. The observation of the AO that had M/s Kashish Park Realtors Pvt Ltd developed the additional TDR-FSL then it would not have been eligible for deduction u/s 8OIB(IO) is without any legal basis because as held by the jurisdictional High Court in the case of Vandana Properties, even the additional building tied on the same plot of land where other buildings had already existed was eligible for the deduction provided other conditions were fulfilled. The project had been constructed on a plot of land of more than one acre as is apparent from the fact that the appellant firm had acquired the development rights of FSI to the tune of 9851 sq. mts. Therefore, deduction u/ 80IB(10) was available to the appellant as no violation of any other conditions has been pointed out by the AO. - Decided in favour of assessee.
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