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2021 (2) TMI 216 - AT - Income TaxDeduction u/s. 80IB(10) - assessee is merely a land owner and it has not developed and built housing projects approved by the local authority , thus the primary condition for claiming the deduction u/s. 80IB(10) has not been fulfilled - As per DR CIT(A) without properly appreciating the facts of the assessee’s case which is merely a land owner vis-a-vis M/s. Sanghvi & Doshi Enterprises, which is clearly a developer , has wrongly allowed the appeal and hence pleaded to restore the order of the Ld. A O - HELD THAT:- Assessee is the owner of the land , as a owner of the land all that it was entitled to on the terms of the agreement between the parties was for the undivided share of the land measured in terms of the built-up area and it had no interest in the development or in the cost of construction, which the Developer alone had to bear. As is evidenced by its P&L account also, the assessee has not incurred any cost towards any developmental activity. It has not established either before the lower authorities or before us that it had undertaken developmental activities either as a Owner or as a Developer or Jointly. As a owner of the land , there was no risk to the assessee and its interest was in the realisation of the potentialities by way of encashing the past investment made etc. Therefore , the assessee has not made out a case that it is entitled for the deduction claimed u/s 80-IB(10) and hence the Revenue’s appeal is allowed.
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