TMI Blog2013 (4) TMI 974X X X X Extracts X X X X X X X X Extracts X X X X ..... rovisions of the Act, unjust, bad in law and without jurisdiction. 2. The Learned CIT(A) was not justified in holding that the assessee is not a developer and builder and that it is a contractor. 3. The Learned CIT(A) was not justified in disallowing claim of deduction u/s 80IB(10) of the ₹ 88,17,665/-. 4. The Learned CIT(A) was not justified in not quashing the proceedings u/s 271(1)(c) of the I.T. Act. 2. Rival contentions have been heard and record perused. The facts in brief are that the assessee is engaged in development of housing project. During the year under consideration a deduction was claimed u/s 80IB(10) of the Act amounting to ₹ 88,17,665/-. The Assessing Officer declined assessee s claim by observing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her for the purpose of availing loan from any Bank or Financial Institutions or employer etc. or otherwise, then the builder may execute the required sale deed of the apartment only after receiving the appropriate installments from the purchaser, but in that case for all practical purposes the actual and physical possession of the said apartment shall continue to remain with the builders only and the builders shall have a lien over the said apartment until the entire balance payment is made to the builders either by the purchaser or by purchaser or by his/her financer. Therefore, it is clearly understood and agreed by the purchaser that such sale deed will be executed by the builders only to facilitate the purchaser to get the housing loan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m the record that the assessee was engaged in the business of construction and development of housing project. During the year under consideration, deduction was claimed u/s 80IB(10) of the Act in respect of Paras Heritage Phase-I, alleged to be sold during the year. We found that due permission for housing project was taken from the competent authority and the entire project was also completed before 31/03/2008. As per the completion certificate dated 25/03/2008 issued by Municipal Corporation, Bhopal wherein it was certified that with respect to approval granted vide letter No. 1792 dated 01/01/04 and 1110 dated 08/11/2007 have been completed. The only objection of the Assessing Officer was that total construction of the plot was much hig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... et normally all the prospective buyers purchase flat/bungalow, are interested to avail housing loan facility from different financial institutions/banks. The financial institutions/banks insist for the execution of the sale deed before completion of the units to safeguard their interest. These agreements have been executed by the assessee before execution of sale deed and in the agreement for sale, the total cost of flat is mentioned and nowhere the bifurcation of amount of plot and amount of finished work has been mentioned. We also found that builders are asking the buyers to pay the total amount of flat at different stages based on the progress of the project. It is evident from the agreements submitted before the Assessing Officer that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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