TMI Blog2013 (7) TMI 291X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act, since the assessee had not deducted the tax at source as required under law, it cannot be denied that such disallowance would ultimately go to increase the assessee's profit from the business of developing housing project. Whatever be the ultimate profit of the assessee as computed even after making disallowance under section 40(a)(ia) of the Act, would qualify for deduction as pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the circumstances of the case, the Tribunal was right in law in directing to allow the disallowance as deduction under section 80-IB(10) of the Act, which is not permissible in law since this amount is not an income derived from a housing project but a disallowance made under section 40(a)(ia) of the Income-tax Act ? (IIb) Whether, on the facts and in the circumstances of the case, the Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o question No. (I). The decision of the Tribunal in the case of Shakti Developers came up for consideration before this court in the case of CIT v. Radhe Developers reported in [2012] 341 ITR 403 (Guj). We upheld the Tribunal's order making the following observations (page 423) : "We have reproduced the relevant terms of the development agreements in both the sets of cases. It can be seen from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... failed to deduct tax at source on payment of transportation charges. The assessee carried the matter in appeal. The Commissioner of Income-tax (Appeals) confirmed the disallowance upon which the assessee approached the Tribunal. Before the Tribunal, the assessee took two stands. He, firstly, contended that this was the first year of the applicability of the provisions and, therefore, out of ignor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lusion. Even if a certain expenditure which was incurred by the assessee for the purpose of developing housing project was not allowable by virtue of section 40(a)(ia) of the Act, since the assessee had not deducted the tax at source as required under law, it cannot be denied that such disallowance would ultimately go to increase the assessee's profit from the business of developing housing projec ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
