2012 (8) TMI 354

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....f Learned CIT(Appeals) in allowing assessee's claim of deduction u/s.80IB(10) of the I.T.Act. For the sake of completeness, ground as raised from A.Y. 2006-07 (lead assessment year) is reproduced below:- 1) The ld. Commissioner of Income-tax(A)-XV, Ahmedabad has erred in law and on facts in allowing the deduction u/s.80IB(10) amounting to Rs.35,71,088/- (Rs.8,62,620/- for AY 2004-05 & Rs.44,61,177/- for AY 2005-06) claimed by the assessee. 2. The assessee is stated to be engaged in the construction of housing project. Facts as revealed from the assessment records for Assessment Year 2006-07 are that the assessee has credited construction income at Rs.86,06,500/-. The net profit shown as per the Profit & Loss account was at Rs.35,71,088/-....

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....g Officer. 3. When the matter was carried before the first appellate authority, the Learned CIT(Appeals) has referred M/s.Shakti Corporation (ITA No.1503/Ahd/2008 - ITAT "A" Bench Ahmedabad) and held that the assessee was in dominant control over the project. The position over the land was handed over to the assessee and it was the responsibility of the assessee to complete the housing project, therefore the assessee has fulfilled the condition as laid down for claiming the deduction u/s.80IB(10) of the I.T.Act. Since the Assessing Officer's view was reversed, hence the Revenue is in appeal. From the side of the Revenue, ld.Sr.DR Mr. B.L.Yadav has argued that the assessee appeared to be a "Contractor" to complete the housing project and ....

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....tain the terms on which the assessee was granted right of construction of a housing project. (b) On the basis of the terms and conditions, it has to be ascertained whether it was a "work contract" or a "Development Contract". (c) On the basis of the terms and conditions, it has to be examined that which of the party had taken full responsibility for execution of the said development project. (d) Whether under the agreement the assessee had been given full authority to develop the land and to construct residential units. The AO has to examine the fact in respect of engagement of professionals, such as, architect for designing and architectural work. (e) The AO has to examine the responsibility of enrolment of members and collecti....