2013 (11) TMI 110

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....n filed late by the assessee. An application for condonation of delay is filed before us and placed on record. After hearing both parties, we condone the delay and proceed to decide the same along with the Revenue's appeal as under. 3. We are considering first the Revenue's appeal, wherein the only effective ground raised by the Revenue reads as under :          "1. On the facts and in the circumstances of the case, the learned Commissioner of Income-tax (Appeals) erred in allowing deduction of Rs. 26,35,686 under section 80-IB(10) of the Income-tax Act despite the assessee's undertaking not being approved by the local authority. The learned Commissioner of Income-tax (Appeals) relie....

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....r deduction under section 80-IB. 5. Aggrieved, the assessee went in appeal before the first appellate authority. The learned Commissioner of Income-tax (Appeals) directed the Assessing Officer to verify the agreement and other details in the light of the decision of the Income-tax Appellate Tribunal in the case of Shakti Developers. The relevant paragraphs of the order of the learned Commissioner of Income-tax (Appeals) are as under :          "4.2 In appeal, it is contended that the assessee is engaged in developing housing project on the land in possession of the firm in the name of Shri Bhikabhai Patel, Shri Vipinbhai Ramanbhai Patel and others. It is also mentioned that the approval of the p....

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....partly modified by the subsequent decision in the case of ITO v. Shakti Corporation I.T.A. No. 1503/AHD/2008 dated November 7, 2008 wherein the hon'ble Income-tax Appellate Tribunal has indicated that the benefit under 80-IB(10) would be available if the developer has dominant control over the project and has developed the land at its own cost and risk and the benefit would be denied if the assessee had entered into an agreement for a fixed remuneration as a contractor to construct or develop the project on behalf of the land owner. The Assessing Officer is accordingly, directed to verify the agreement and other details in the light of the decision of the Tribunal in the case of Shakti Developers. The ground is allowed subject to verifi....