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2021 (2) TMI 344 - AT - Income TaxDeduction u/s 80IB(10) - developing the housing project even though neither land nor development permission was in the name of builder - AO held that assessee failed to substantiate the necessary criteria for claiming deduction under section 80IB(10) as assessee simply engaged in the construction business and executed job on behalf of Co-operative Society - CIT(A) while granting relief to the assessee held that the assessee is a developer, the building plan was approved at the instance of the assessee, the area of development of housing project is more than one (01) acre, the project was completed before 31.03.2003 - HELD THAT:- The assessee firm paid the cost of land purchased from the seller. Expenses for the registration of land, stamp duty were borne by the assessee. All project cost were also borne by the assessee, all the buyers have confirmed about the sales of flats by the firm. Profit on the completion of project was retained by the assessee firm on the basis of aforesaid observation the ld.CIT(A) held that assessee is a developer who applied for approval of plan, constructed the project on more than one acre of land, construction was completed before 31.03.2003, commercial area was less than 3%. The assessee was having dominant control over the project. On the aforesaid observation, the ld.CIT(A) held that decision of Radhe Developers and other [2011 (12) TMI 248 - GUJARAT HIGH COURT] is squarely applicable on the case. In Radhe Developers (supra) the Hon'ble High Court held that neither the provision of section 80IB nor any other provisions contained in other relevant statues were brought to demonstrate that ownership of land would be condition precedent for developing housing project.It was perhaps not in the case of Revenue that under other law governing construction in Urban and Semi-urban area there was any restriction. Also in CIT vs Sahajanand Associates [2014 (4) TMI 76 - GUJARAT HIGH COURT] while relying on earlier decision of High Court in Radhe Developers (supra) held that assessee is entitled for deduction under section 80IB(10) in respect of developing the housing project even though neither land nor development permission was in the name of builder. Even though title of land had not passed on the assessee and development permission obtained in the name of original land owner, the deduction under section 80IB is admissible to the assessee. No illegality or infirmity in the order passed by the ld.CIT(A) - Decided against revenue.
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