TMI Blog2021 (3) TMI 1221X X X X Extracts X X X X X X X X Extracts X X X X ..... h the salary component and the commission. Payment of dividend is made in terms of the Companies Act, 1956. Dividend has tobe paid to all shareholders equally. This position cannot be disputed by the Revenue. Dividend is a return on investment and not salary or part thereof. Herein the consideration in the form of commission which was paid to Ashok Gupta was forservices rendered by him as per terms of appointment as a Managing Director. - Decided in favour of assessee. Disallowance of deduction under section 801B(10) - CIT-A deleted the addition as confirmed by tribunal - HELD THAT:- As decided in Sanghvi and Doshi Enterprise [ 2012 (12) TMI 84 - MADRAS HIGH COURT ] it is an admitted fact that the approval was granted for construction, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... RS.JUSTICE T.V.THAMILSELVI For the Appellant : Mr. M.Swaminathan Senior Standing Counsel and Mrs. V. Pushpa For the Respondent : Mr.R.Sivaraman JUDGMENT (M. DURAISWAMY, J.) Challenging the order passed in I.T.A.No.1093/Mds/2011 in respect of the Assessment Year 2008-09 on the file of the Income Tax Appellate Tribunal, Chennai, ''D'' Bench (for brevity, the Tribunal), the Revenue has filed the above appeal. 2.1 The assessee is a builder and flat promoter. During the year, the assessee had executed projects at MRC apart from ongoing projects in various places. In addition, the assessee had also earned profit on sale of flat and land. The other income includes profit on sale of interior income from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee got number of marketing professional on its roles ranging from Assistant General Manager Marketing, Senior Manager, Manager, Chief Manager (Marketing). Consequently, the payment of commission by the assessee is covered under section 36(1)(ii) and therefore, an addition of ₹ 4,83,59,772/- was added to the total income. 2.4 As regards, the disallowance of deduction under section 801B(10), the assessee had executed the project name TVH Rozalia and claimed deduction under section 801B(10). The assessee has stated vide letter dated 267.11.2010 that the conditions stipulated were satisfied. As regards approval of the local authority, the assessee has stated that the lands were approved by the CMDA vide permit dated 29.05.2006 and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee under section 801B(10) is to be allowed? 4. When the appeal is taken up for hearing, Mr. M.Swaminathan, learned Senior Standing Counsel appearing for the appellant fairly submitted that the issues involved in the present appeal are covered by the decision of this Court. The learned Senior Standing Counsel further submitted that so far as the 1st question of law is concerned, the same is covered by the decision of the Judgment of the Division Bench of the Delhi High Court reported in (2012) 20 Taxmann. com 647 ( AMD Metplast Pvt Ltd v. Deputy Commissioner of Income Tax] wherein the Delhi High Court held as follows:- ... 10. We fail to understand how the aforesaid observations assist and help the Revenue in the factual ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he construction as early as 05.03.2006, a fact which is not disputed by the Revenue. It is also an admitted fact that the approval was granted for construction, both by the Chennai Metropolitan Development Authority and the local authority, namely, Chennai Corporation. The letter of the Chennai Metropolitan Development Authority according sanction to the project as early as 23.9.2003 clearly points out that the sanction was also subject to the approval by the Corporation. Thus, with the planning details being subjected to the approval by the Corporation as the competent local authority and it having certified as to the completion as early as 28.12.2007, we are satisfied that the completion being on or before 31.3.2008, the reliance placed o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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