TMI Blog2016 (7) TMI 818X X X X Extracts X X X X X X X X Extracts X X X X ..... racter of assessee as a contractor or developer. It is pertinent to mention here that clause (4) authorizes the assessee to register new member and settle price for units registered for them. This authority to the assessee is in addition to already existing members. Therefore, if we look the details in the light of the above agreement, then, it would reveal that the CIT(A) has rightly treated the assessee as developer and rightly allowed the deduction under section 80IB(10) of the Income Tax Act - Decided in favour of assessee. - ITA No.1428 and 1429/Ahd/2012 - - - Dated:- 11-7-2016 - SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER For The Revenue : Shri Jamesh Kurian, Sr.DR For The Assessee : Ira R. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (s) in the light of facts obtaining in the books of accounts maintained for the said undertaking by the assessee and other relevant documents, keeping in view the aforesaid decisions of the ITAT as also after, allowing sufficient opportunity to the assessee and thereafter, decide as to whether the undertaking of the assessee has indeed purchased the land for a fixed consideration from the landowner and Las developed the housing project at its own cost and risks involved in the project. In the event the AO finds that the land had been purchased by the undertaking of the assessee and has all the dominant control over the project and developed the land at their own cost and risks, the- AO should allow the deduction u/s. 80IB(10)of the Act, in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1. The party of second part (assessee) will be totally responsible for the development of property to be constructed at T.P.ANo.5, P.P.No.29/30, Village - Umra belonging to party of the first part and the party of the second part will be known as developers of the said project. 2. The party of second part will have to construct according to plans. For the purpose of construct/on, the party of second part w/71 be able to enter into agreement with the firms of contractor/Sub-contractor, labour contractor, architect, engineer and legal advisor. To procure material in time they will be able to enter into agreement with suppliers. They will be able to purchase materials for construction work to make payment for same. They will be able ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be able to re-register the said flat and allot the same to any other person. 5. ..... 6. ..... 7. By this agreement, all the rights of development of land belonging to society are given to the party of the second part. Any loss or profit arising in respect of the development of the project over and above, the remuneration agreed in serial no. 9 of this agreement shall be borne by the developers. In other words, any profit or loss arising after this date shall be of developers and society or its members will not be responsible for any such profit or loss either in full or part. 8. According to this agreement, the party of the second part will be totally responsible for any act done by it as builder, organizer or devel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of contribution made by it, i.e. its remuneration will be ₹ 15 x ₹ 100/Rs.115 on total collection of contribution. The party of the second part shall kept a record of the same and the party of the first part shall pay or give credit of the same to the party of the second part. 6. A bare reading of the agreement would suggest that the assessee had borne the risk and also entitled for the reward. Clause-4 of the agreement duly authorizes the assessee to register individuals, firms or companies as a member of the Society and determine the price for unit registered for them. The emphasis of the ld.AO towards clause-9 of the agreement is concerned, it contemplates remuneration at the rate of 15% on the contribution collected fr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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