2015 (1) TMI 481

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..... her, on the facts and circumstances of the case, the Tribunal was right in law in allowing deduction u/s.80IB(10) r.w.s. 80IB(1) to the assessee when the approval by the local authority as well as completion certificate was not granted to the assessee but to the landowner and the rights and the obligations under the said approval were not transferable, and when the transfer of dwelling units in favour of the end-users was made by the landowner and not by the assessee?      [B] Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in allowing deduction u/s.80IB(10) r.w.s. 80IB(1) to the assessee on profit derived from sale of unutilized FSI not being the element of profits derived from .....

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..... not given to the assessee but it was given to the landowner with whom the assessee had entered into what is termed as a development agreement for the construction of the housing project, and accordingly the Assessing Officer disallowed this deduction. Profit attributable to the sale of unutilized FSI During the course of assessment proceedings, the Assessing Officer observed that the assessee had not fully utilized the permissible FSI available, as per the approval of Municipal Corporation. The un-utilized FSO was unexploited for the purposes of development and construction of housing project thereupon. In view of this, it was inferred that as no further construction was carried out by the assessee, the un-utilized FSO disposed of by the as .....

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..... a parallel from the case of Commissioner of Income-Tax v. Radhe Developers decided by the ITAT (Ahmedabad), which has now attained finality as the appeal of revenue is dismissed and reported in 341 Income Tax Reports 413. The Appellate Tribunal relying on the case mentioned herein above endorsed the view of the CIT(A). 4. We have heard learned Advocate for the appellant and perused the records of the case. We are of the view that the above question is now governed by the decision of this Court in the case of Commissioner of Income-Tax v. Radhe Developers (supra). Relevant part of the Judgment reads as under:-                "(ii) That the assessees had, in part perform .....

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