2014 (3) TMI 804

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....come-tax (Appeals) has erred in deleting the addition of Rs. 8,34,50,531/- made on account of disallowance u/s. 80IB by placing reliance on the decision in the case of Radhe Developers. " 2. The brief facts of the case are that the assessee firm has filed its return of income on 17.09.2010 declaring total income of Rs. NILL, after claiming deduction u/s. 80IB(10). The assessee is a partnership firm which is engaged in the business of Developing & Building Housing Projects and sale of flats and villas. It is seen from the details filed that the assessee has executed project viz. CD Scenic Acres at Fatorda, Margao. The assessee claimed deduction u/s.80IB(10) for the project CD Scenic Acres at Rs 8,34,50,531/-. The assessee firm has filed d....

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....ming deduction u/s 801B (10), assessee's claim of deduction on profits derived from construction and development of residential housing project was to be allowed." Similarly, in the instant case the, the approval of the project was taken in the name of the owner of the land and then the housing project was developed by the appellant. All the significant Risks and Rewards related to the housing project belonged to the appellant. In view of the similarity of facts of the judicial pronouncements relied upon by the appellant, respectfully following the decision in the case of Radhe Developers, the A.O. is directed to allow the claim of appellant made u/s. 80IB (10) and delete the addition." 4. The Learned DR submitted that the owner of the p....

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....section 53A of the Transfer of Property Act wherein there is an agreement in writing, the transferee is willing to perform his part of the contract and the transferee has taken possession of the property, then the effective ownership of the property is deemed to be transferred. Therefore, as per the decision of Ahmedabad High Court in the case of Radhe Developers vs. Income Tax Officer, 113 ITJ 300 wherein the similar fact are that the High Court has allowed the claim of the assessee. Therefore, CIT(A) is justified in his action and our interference is not required. 7. We have heard the rival contention of both the parties. Looking to the facts and circumstances of the case, we find that the land owner has executed agreement to sale with....

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....art of sale consideration and in lieu thereof he had granted development permission to the assessee. In this case this condition is satisfied that the assessee developer was given possession and assessee has undertaken the construction as per plans approved by Local Authority. The assessee developer has paid fees to the Architects and Engineers. The assessee has carried out and admitted the members. The land owner has agreed to give necessary signature, agreements, and even power of attorney to facilitate the work of the developer. Therefore, the assessee has undertaken the entire task of development, construction and sale of the housing units to be located on the land belonging the original land owners. We find that as per the sale agreeme....

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....actor or labour contractor for execution of the work. The assessee was authorized to admit the persons willing to join the scheme. The assessee was authorised to receive the contributions and other deposits and also raise demands from the members for dues and execute such demands through legal procedure. In case, for some reason, the member already admitted is deleted, the assessee would have the full right to include new member in place of outgoing member. He had to make necessary financial arrangements for which purpose he could raise funds from the financial institutions, banks etc. The land owners agreed to give necessary signatures, agreements, and even power of attorney to facilitate the work of the developer. In short, the assessee h....