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2019 (2) TMI 906 - HC - Income TaxDeduction u/s 80IB (10) denied - assessee had entrusted the development to another company by execution of a Joint Development Agreement - claim of an assessee incorporated for the purpose of real estate development for deduction - learned Senior Standing Counsel submitted that the builder, M/s.ETA has also claimed deduction and it would amount to double deduction - Held that:- As seen from the P & L the appellant has not taken the cost of the land into consideration thereby claiming more surplus income for the purpose of 80IB(10) benefit. The appellant has shown only increase in work-in-progress of ₹ 2.22 crores along with some minimal expenses in its P & L but this has nothing to do with the cost of the land alone. Tribunal merely stated that no expenses were recorded in the P & L account. Therefore, the contention advanced by the Revenue in this regard is not tenable. That apart, a plain reading of Section 80IB(10) of the Act evidently makes it clear that deduction is available in a case where an undertaking develops and builds a housing project. The Section clearly draws the distinction between 'developing' and 'building'. In the preceding paragraphs, we have noted the factual position as could be culled out from the joint venture agreement, which clearly shows that the assessee is the developer and M/s.ETA is the builder and mutual rights and obligations are inextricably linked with each other and undoubtedly, the project is a housing project thereby, the assessee would be entitled to claim deduction under Section 80IB (10) of the Act. Thus, for the above reasons, we hold that the Tribunal erred in reversing the order passed by the CIT(A). We find that the authorised representative, who appeared on behalf of the assessee has specifically stated that there is no case of double deduction and it is only proportionate to their respective shares. We find that the Tribunal has not given any finding as to any double deduction and therefore, such a plea cannot be canvassed before us in this appeal. - Appeal filed by the assessee is allowed
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