TaxTMI 
TaxTMI 
2012 (8) TMI 353
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.... in deleting the addition of Rs.6,74,712/- made by way of disallowance of deduction claimed u/s.80-IB(10) of the I.T. Act, ignoring the fact that the assessee is 'not the owner of the land' on which the project is developed and it has merely worked as a commission agent for the project owner i.e. of the Society. (2) On the facts and in the circumstances of the case and in law, the learned CIT(A)-II, Surat has erred in placing reliance on the decision given by the Apex Court in the case of Mysore Minerals Ltd. (239 ITR 775), ignoring the fact that the issue regarding the dominion over the land is untenable in the context of section 80- IB(10) and it has to be understood in perspective as settled by the Hon'ble Supreme Court in the subsequen....
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....uthority, i.e. SMC. On those reasons, the Assessing Officer has held that the assessee has wrongly claimed the deduction u/s.80-IB of the I.T.Act. After a detailed discussion and after considering the terms of the agreement, the Assessing Officer has held that the assessee has wrongly claimed a deduction u/s.80-IB(10) of the I.T.Act of Rs.6,74,712/- and the same was disallowed. The matter was carried before the first appellate authority. 3. Learned CIT(Appeals) has observed that in the past for AYs 2004- 05 and 2005-06 vide orders dated 24/07/2007 & 31/3/2008 respectively the claim of the assessee was allowed. Hence, Learned CIT(Appeals) has held that since the facts have remained the same as in the immediately preceding year, therefore, o....
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....sessee and other relevant documents, keeping in view the aforesaid decisions of the ITAT as also after allowing sufficient opportunity to the assessee and thereafter, decide as to whether the undertaking of the assessee has indeed purchased the land for a fixed consideration from the landowner and has developed the housing project at its own cost and risks involved in the project. In the event the AO finds that the land had been purchased by the undertaking of the assessee and has all the dominant control over the project and developed the land at their own cost and risks, the AO should allow the deduction u/s.80IB(10) of the Act, in accordance with law. In case the AO finds that the undertaking of the assessee has acted on behalf of the la....
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....cution of the said development project. (d) Whether under the agreement the assessee had been given full authority to develop the land and to construct residential units. The AO has to examine the fact in respect of engagement of professionals, such as, architect for designing and architectural work. (e) The AO has to examine the responsibility of enrolment of members and collection of charges required to be made from the buyers of the residential units. (f) The AO has to examine about the "profit" or "loss" arising from the said project. (g) Though the ownership of land has been held as not the only criteria for allowing the claim u/s.80IB(10) but the domain over the land and the control over the project has to be examined by the AO. ....