GST Helpdesk   Subscription   Demo   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2016 (2) TMI 464 - ITAT AHMEDABAD

2016 (2) TMI 464 - ITAT AHMEDABAD - TMI - Disallowance of claim of the assessee made u/s.80-IB(10) - Held that:- It is seen that the entire risk is of the appellant who is developing the project and there is no agreement for fixed remuneration as a contractor. In the instant case, the appellant has purchased the land for fixed consideration and has developed the housing project on its own cost and there is no joint venture with the land owner and thus in terms of decision in the case of M/s. Sha .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

inst the order of the Ld.Commissioner of Income Tax(Appeals)-I, Ahmedabad ['CIT(A)' in short] dated 13/05/2011 pertaining to Assessment Year (AY) 2008-09. The Revenue has raised the following grounds of appeal:- 1) The Ld.Commissioner of Income-tax(A)-I, Ahmedabad has erred in law and on facts in directing the Assessing Officer to allow the assessee's claim for deduction of ₹ 1,38,55,701/- u/s.80-IB(10) of the Act. 2) The Ld.Commissioner of Income-tax(A)-I, Ahmedabad has erred .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

mpletion rests with the Society. Assessee was just a contractor of the land constructing housing projects AND not a developer. 3) On the facts and in the circumstances of the case, the Ld.Commissioner of Income-tax(A)-I, Ahmedabad ought to have upheld the order of the Assessing Officer. 4) It is therefore, prayed that the order of the Ld.Commissioner of Income-tax(A)-I, Ahmedabad may be set-aside and that of the Assessing Officer be restored. 2. Briefly stated facts are that the case of the asse .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

artly allowed the appeal, thereby directing the AO to allow the deduction u/s.80-IB(10) of the Act in view of the decision of the Coordinate Bench (ITAT 'A' Bench Ahmedabad) in the case of Radhe Developers vs. ITO in ITA No.2482/Ahd/2006 and of ITO vs. M/s. Shakti Corporation in ITA No.1503/Ahd/2008 dated 07/11/2008. Aggrieved by the order of the ld.CIT(A), now the Revenue is in appeal before us. 3. Ground No.1 & 2 are inter-connected and, therefore, the same are decided together. Th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e decision of the Coordinate Bench (ITAT 'A' Bench Ahmedabad) in the case of ITO vs. M/s. Vasudev Developers in ITA No.1868/Ahd/2011 for AY 2008-09, dated 08/05/2015. 3.2. In rejoinder, the ld.Sr.DR submitted that even otherwise also, the assessee is not entitled for deduction as the completion of project was not made within the prescribed time. The ld.counsel for the assessee drew our attention towards paper-book to buttress this contention that the submission of the ld.counsel for the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ted that for AY 2004-05 to 2007-08, the CIT(Appeals)-I decided the matter in favour of the appellant. 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 clarified and proved that the development was car .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

able to sell the units. Possession of the land was also given to appellant developer and risks associated with housing project were borne by appellant. It is added that the appellant has not earned remuneration at fixed rate. On the main issue of ownership of land and approval being in the name of landowner for claim of deduction u/s.80IB(10) it is seen that although, the issue was decided in favour of the appellant and against revenue by the order of the Jurisdictional ITAT, in the case of Radh .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

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 Faquir Chand Gulati vs Upal 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 proves the land. The Builder puts up a building. Thereafter, the land owner and builder share the constructed are. The builder delivers the owner's share to the land h .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version