2008 (10) TMI 550

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....on u/s. 80IB(10) to the assessee, who was not granted approval by the local authority to carry on the business of an undertaking developing and building housing projects, in contravention of a plain reading of section 80IB(1) r.w.s. 80IB(1), Explanation to section 80IB(10) and rule 18BBB. 2. The ld. CIT(Appeals) failed to make a combined reading of section 80IB(1), which is the substantive provision, and section 80IB(10), which is a machinery provision, postulating complete identity between the assessee as referred to in section 80IB(1), and the undertaking developing and building housing projects approved by the local authority as referred to in section 80IB(10), not permitting such splitting between the assessee and the person who is g....

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....he benefit of section 80IB(10) by the landowner getting approval from the local authority for developing and building of housing projects to the person with whom he enters into agreement for execution of such projects, without there being any provision in section 80IB for such passing on, as contained in section 80HHC(1A). 7. Without prejudice, the ld CIT(Appeals) erred in allowing deduction u/s. 80IB(10) in respect of the proceeds attributable to the sale of unutilized FSI and not toe the dwelling units in the housing projects, which could not be termed as profits 'derived' from developing and building housing projects in terms of this provision." 2. None appeared on behalf of assessee, the notice of hearing sent by registered pose w....

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....ot granted in assessee's name Vadodara Municipal Corporation granted approval in the name of the original land owners and not in the name of assessee/developer. Ld. CIT(A) observed in para-2.1 and 2.2 of his order, which is reproduced below:- "2.1. The assessee in its return of income has claimed deduction und section 80IB(10) which was disallowed by the Assessing Officer on the ground that the assessee was not the owner of the property and the permission was not granted in the assessee's name. The approval by the Vadodara Municipal Corporation was in the name of the original land owners and not in the name of assessee developer and as per the Assessing Officer the original land owner had merely obtained the services of assessee firm for....