TaxTMI 
TaxTMI 
2014 (3) TMI 529
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....g Nil income after claiming deduction of Rs. 67,67,672/- under section 80IB of the Act. The case was selected for scrutiny and thereafter the assessment was framed under section 143(3) vide order dated 31.12.2008 and the total income was determined at Rs. 68,83,170/-. Aggrieved by the order of A.O, Assessee carried the matter the before CIT(A). CIT(A) vide order dated 20.10.2010 allowed the appeal of the Assessee. Aggrieved by the order of CIT(A), the Revenue is now in appeal before us and has raised the following grounds:- 1. On the facts and in the circumstances of the case and in law, the ld. CIT(A) erred in directing the Assessing Officer to allow the deduction u/s. 80IB(10) r.w.s. 80IB(1) of the Income-tax Act to the assessee in view ....
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....y was taken by other people and not by Assessee, the land owners had sold the pieces of land to unit holders directly and Assessee had acted merely as a confirming party, Assessee had acted merely as a contractor as it had entered into construction agreement with the unit holder and the Assessee never sold the house to the unit holder as there was no Registered document in respect thereof. A.O. noticed that Assessee had carried out the construction activity on the land without fully utilizing the permissible Floors Space Index (FSI). A.O noticed that though the approved FSI in regard to the unit constructed has been fully utilized as per the approved plan of the local authority yet the balance FSI available on the plot of land for developme....
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.... section 80IB(10) is directed to be allowed. Second ground of appeal is allowed. 6. Aggrieved by the aforesaid order of CIT(A), the Revenue is now in appeal before us. Before us, ld. D.R. took us through the detailed findings of A.O. and submitted that A.O. has rightly held that Assessee is not eligible for deduction u/s. 80IB(10). On the other hand the ld. A.R. submitted that it has complied with all the conditions as stipulated under section 80IB(10) and it was eligible for deduction under 80IB(10). He also relied on the decision in the case of Radhe Developers and Shakti Corporation (supra). He thus submitted that CIT(A) has rightly held that Assessee is eligible for deduction u/s. 80IB(10) of the Act and he thus supported the order of ....
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.... facts, the Hon'ble Court has allowed the deduction u/s.80-IB(10). Those requirements have to be fulfilled by a developer to stake a claim of deduction. The requisite information is not available on record. We have noticed that the said requisite information was not even examined by the Revenue Authorities in the light of the- High Court decision. The guidelines given by the Hon'ble High Court can be summarized as follows:- (a) The relevant terms of development agreement are to be examined so as to ascertain 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) ....
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....edure for raising of funds either by private placement or by financial institutions. (l) The risk element connected with the said housing project has also to be examined. (m) The Assessing Officer has to examine the size of the plot on which project is constructed. (n) The A.O. has to examine built-up area of sanctioned unit whether within the prescribed limit. In addition to the above guidelines, once the matter is going back for reconciliation, then the agreements connected to the land and the details of the approval granted by the local authority permitting to develop the housing project can also be examined if deem fit. Since the Hon'ble High Court has given the verdict in favour of the assessee after due ascertainment of these b....