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The Income Tax Officer, Ward-52) (3) , Bangalore Versus M/s Karnataka State Co-operative Subhadramma Housing Federation Ltd.,

2016 (9) TMI 794 - ITAT BANGALORE

Deduction u/s 80P(2)(a)(i) - Held that:- We find that a categorical finding has been given by the AO that the assessee is hit by sub-sec.4 of sec.80P of the IT Act and on this actual aspect, there is no finding by the ld. CIT(A) that the assessee is not hit by sub-sec.4 of sec.80P of the IT Act, 1961 and therefore, without a finding for dislodging the objection of the AO regarding the applicability of sub-sec.4 of sec.80P of the IT Act, 1961, the order of the ld. CIT(A) is not sustainable. Howev .....

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o both sides. - Decided in favour of revenue for statistical purposes - TDS u/s 194C - Proceedings u/s 201(1)& 201(1A) - Held that:- In the present case, as per agreement available in paper book, the first party i.e. the assessee society agreed to purchase 1500 intermittent sites of various dimensions in the proposed layout to be formed by second party i.e. Shri Lakshman at the rate of 305/- per sq.ft. and the first party has agreed to make an advance payment of ₹ 2.00 Crores to the se .....

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second party was also required to provide certain specified facilities and amenities in the layout such as wide asphalted roads, water and sanitary connections, electrification with overhead lines and transformers, adequate street lights, dedicated Telephone exchange, milk booths, KPTCL/BESCOM extension counter, Police outpost, Bus terminus, shopping arcades including vegetable market etc., along with overhead tank/sump tank connected to bore wells in order to provide adequate water supply and .....

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ed is to be conforming to certain specified quality and other conditions. Hence, in our considered opinion, in the present case, the agreement of the assessee with Shri Lakshman is for purchase of land with some specific facilities and it is not a contract requiring deduction of TDS u/s 194C of the IT Act, 1961. Thus proceedings u/s 201(1)( 201(1A) of the IT Act are dismissed. - Decided in favour of assessee - ITA Nos.1301, 1307 to 1313(Bang) 2015 - Dated:- 29-7-2016 - SHRI A. K. GARODIA, ACCOUN .....

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of by this common order for the sake of convenience. 2. First we take up appeal of the revenue in course of assessment proceedings for AY: 2011-12 in ITA No.1301(B)/2015. 3. The grounds raised by the revenue are as under; 1. The order of the ld. CIT(A) is opposed to law and facts of the case. 2. On the facts and in the circumstances of the case the CIT(A)_ erred allowing deduction u/s 80P(2)(a)(i) of the IT Act, 1961. 3. On the facts and in the circumstances of the case, the CIT(A) erred in all .....

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gricultural and rural development bank and therefore, the assessee is hit by Sub-sec.4 of Sec.80P of the IT Act and hence, the assessee is not eligible for deduction u/s 80P but in spite of this, ld. CIT(A) had allowed deduction u/s 80P on the basis of some judicial pronouncements but without giving a finding that the assessee is not hit by sub-sec.4 of Sec.80P and therefore, the order of ld. CIT(A) should be reversed and that of the AO should be restored. 5. The ld. AR of the assessee supported .....

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d. CIT(A) is not sustainable. However, in the facts of the present case, we feel it proper that this matter should go back to the file of the ld. CIT(A) for a fresh decision after giving a clear finding on the factual aspect as to whether sub-sec.4 of sec.80P is applicable to the assessee in the present case or not. Accordingly, we set aside the order of the ld. CIT(A) and restore the mater back to the file of the ld.CIT(A) for a fresh decision in the light of above discussion after providing ad .....

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ical except the difference in amount and hence, we re-produce grounds raised by the revenue in AY: 2008-09, in ITA No.1307(B)/2015. 1. The order of the CIT(A) is opposed to the facts and nature of the case on hand. 2. Whether the ld. CIT(A) was right in relying upon the judgment of the Hon ble High Court of Karnataka in the case of CIT & ITO Ward-16(3) Vs Karnataka State Judicial Department Employees House Building Co-operative Society Ltd., when the facts of the case are clearly distinguish .....

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hat there was no element of handing over of possession of land even though the first condition on page-3 of the Tripartite agreement dated 31st October 2006 clearly stated that Sri Lakshman (Second party) and Sri C.S. Sambhaiah, Sri B.S.Shantha Kumar and Sri B.M.Shialingegowda (together known as third party) had put the Karnataka State Co-operative Housing Federation Lt.,(first party) in possession of the converted land measuring 26 acres 6 guntas as described in the schedule? 5. Whether the ld. .....

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t of contract for procurement of land whether there is no element of contract for developmental works also, especially when the supplemental agreement envisages the release of payment on a milestone basis which is typical of Contracts ?. 10. The ld. DR of the revenue supported the order of AO passed by him u/s 201(1) & 201(1A) of the IT Act, 1961. As against this, ld AR of the assessee supported the order of the ld.CIT(A). He also submitted that this issue in the present case is squarely cov .....

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that the assessee is only a purchaser and hence, even if any advance sale consideration is paid by the assessee, no TDS is required to be deducted. Now in the light of these judgments, we examine the facts of the present case. In the present case, as per agreement available in paper book, the first party i.e. the assessee society agreed to purchase 1500 intermittent sites of various dimensions in the proposed layout to be formed by second party i.e. Shri Lakshman at the rate of 305/- per sq.ft. .....

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lso to obtain approval for the layout plan from the competent sanctioning authority and the second party was also required to provide certain specified facilities and amenities in the layout such as wide asphalted roads, water and sanitary connections, electrification with overhead lines and transformers, adequate street lights, dedicated Telephone exchange, milk booths, KPTCL/BESCOM extension counter, Police outpost, Bus terminus, shopping arcades including vegetable market etc., along with ove .....

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