TMI Blog2015 (10) TMI 1499X X X X Extracts X X X X X X X X Extracts X X X X ..... ration and developed the housing project on its own cost, and there was no joint venture with the land owner. This finding of the CIT(A) has not been controverted by the DR by bringing any positive material on record. Further, no material was also brought on record to show why the decision of the Tribunal in the case of Shakti Corporation (supra) and the Radhe Developers (supra) should not have been followed by the CIT(A). In the absence of the same, we find no good reason to interfere with the order of the CIT(A), which is confirmed and the ground of the appeal of the Revenue is dismissed. - Decided in favour of assessee. - ITA No.1871/Ahd/2011 - - - Dated:- 8-5-2015 - N S Saini, AM And S S Godara, JM,JJ. For the Appellant : Shri D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ject is granted by the competent authority in the name of the Land owner only. (iv) The appellant is not a builder or developer but a contractor and is acting for and on behalf of the Co-op. society and the appellant is not eligible for deduction under section 80IB. 4. On appeal, the CIT(A) allowed the deduction under section 80IB(10) of the Act to the assessee by observing as under: 4.4 I have carefully examined the facts of the case, submissions of the appellant and perused the arguments of the Assessing officer. The AO's arguments are mainly based on two grounds i.e. the land was registered in the name of the society and that the permission for development was in the name of Society. As against this, the appellant has clar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... denied if the assessee had entered into an agreement for a fixed remuneration as a contractor to construct or develop the project on behalf of the land owner. Further, Hon'ble Apex Court in the case of Faqir Chand Gulati vs Uppal Agencies Pvt. Ltd. Anr. (Civil Appeal No. 3302 of 2005) dated 10/07/2008 has held that i) A development agreement is one where the land holder provides the land. The Builder puts up a building. Thereafter, the land owner and builder share the constructed area. The builder delivers the owner's share to the land holder and retains the builder's share. The land holder sells/transfers undivided share'/s in the land corresponding to the builder's share of the building to the builder or his nomin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onsidering the submissions of the DR and the material available on record. 7. We find that the CIT(A) after analyzing the development agreement, and thereafter following the decision of the Ahmedabad Bench of the Tribunal in the case of Shakti Corporation (supra) and Radhe Developers (supra) has allowed the claim of deduction under section 80IB(10) to the assessee. We find that the CIT(A) has given a finding that the entire risk for development of the project was taken by the assessee and the assessee was not paid remuneration as contractor. The assessee purchased the land for fixed consideration and developed the housing project on its own cost, and there was no joint venture with the land owner. This finding of the CIT(A) has not been ..... X X X X Extracts X X X X X X X X Extracts X X X X
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