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2016 (5) TMI 1184 - ITAT MUMBAI

2016 (5) TMI 1184 - ITAT MUMBAI - TMI - Eligibility for deduction u/s 80IB(10) on a plot/housing project - Held that:- Ownership of the plot is not necessary for availing the claimed deduction u/s 80IB(10) of the Act. See Radhe Developers case [2011 (12) TMI 248 - GUJARAT HIGH COURT] - Decided in favour of assessee - ITA Nos. 4085 & 4086/Mum/2012 - Dated:- 20-4-2016 - Shri Joginder Singh, Judicial Member And Shri Ashwani Taneja, Accountant Member For the Revenue : Shri Maurya Pratap-DR For the A .....

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he conditions stipulated in the section are not fulfilled by the assessee. 2. During hearing of these appeals, Shri Vimal Punamiya, ld. counsel for the assessee, at the outset, claimed that the impugned issue is covered in favour of the assessee by the order of the Tribunal dated 22/03/2016 for Assessment year 2007-08 (ITA No.8260/Mum/2011). This factual matrix was consented to be correct by Shri Maurya Pratap, Ld. DR. 2.1. We have considered the rival submissions and perused the material availa .....

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hs. The AO completed the assessment u/s.143 (3) of the Act, on 24/12/2009 determining the income of the assessee at ₹ 7.82 crores. 2. During the assessment proceedings, the AO found that the assessee had claimed deduction of ₹ 7.56 crores u/s.80 IB (10) of the Act,, that the assessee had entered into an agreement with the owner of a plot of land, that the owners had obtained permission for redevelopment, sale and transfer from the competent authority, that the owner said engaged the .....

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ject was not allowable. 3. Aggrieved by the order of the AO, the assessee preferred an appeal before the first appellate authority (FAA). Before him it was argued that deduction u/s.80 IB (10) was not dependent on ownership, that deduction was allowable if the profits were derived from the business of developing and construction of residential unit, that there was no requirement in the provision that the assessee carrying on the said business should also on the plot of land. After considering th .....

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ng the same, that as per the agreement 22.5% of the gross sales receipt in respect of sale of flats and other premises constructed by utilisation of FSI were to be received by the owners and balance belonged to the assessee company, that all the efforts to develop the plot of land were made by the assessee and not by the owner of the land, that it had incurred all the expenses towards development of land and construction of multistoryed building. Relying upon the case of Radhe Developers (23 SOT .....

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arat High Court has decided that for availing deduction u/s.80 IB (10) of the Act ownership of the plot of land was not necessary. 5. We have heard the rival submissions and perused the material before us. We find that the Hon ble Gujarat High Court in the case of Radhe Developers (ITR) has held as under: Section 80-IB(10) of the Income-tax Act, 1961, requires involvement of an undertaking in developing and building housing projects approved by the local authority. Certain conditions are prescri .....

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in other related statutes demonstrate that ownership of the land would be a condition precedent for developing the housing project. Such requirement cannot be read into the statute because there is nothing in section 80-IB(10) of the Act requiring that ownership of the land must vest in the developer for him to be able to qualify for such deduction. Moreover, the term developer has been understood in common parlance as well as in the legal sense as carrying a much wider connotation. It is well .....

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