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2016 (3) TMI 1085 - ITAT MUMBAI

2016 (3) TMI 1085 - ITAT MUMBAI - TMI - Eligibility of deduction u/s.80 IB (10) - whether 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? - Held that:- As decided in case of Radhe Developers [2011 (12) TMI 248 - GUJARAT HIGH COURT ] The provisions nowhere require that only those developers who the .....

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. 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 settled that while interpreting a statute, particularly, a taxing statute, nothing can be read into the provisions which has not been provided by the Legislature. A condition which is not made part of section 80-IB(10) of the Act, namely, that of owning the land which the assessee develops, cannot be supplied by any purported legislativ .....

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round of appeal is about 80 IB(10) of the Act. Assessee-company, engaged in the business of builders and developers,filed its return of income on 31/10/2010 declaring total income of ₹ 25.89 lakhs. 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 a .....

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housing project was constructed should be owned by the developer, that the assessee was not owner of the plot, that the claim made by it in respect of the profits derived from developing and building housing project 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 deri .....

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plot of land and held that the status of the assessee was of a developer and not of a contract as observed by the AO, that the honour share was in view of transferring the plot of land to the assessee company for developing 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 la .....

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gment of the Hon ble Gujarat High Court in the case of Radhe Developers(341 ITR 403), that the SLP filed by the Department before the Hon ble Supreme Court in the case of Radhe Developers has been dismissed,that the Hon ble Gujarat 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 .....

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