2007 (12) TMI 473

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....mpany had entered into an understanding with M/s Arora Builders (alias M/s Sukhmani Construction) for the development of immovable property situated at Andheri, Mumbai, vide development agreement dt. 28th Nov., 2003. The said agreement was registered with the office of the sub-Registrar, Mumbai. As per development agreement there are two phases of construction'one for rehabilitation and second for sale. The entire expenses for Phase-I, i.e. rehabilitation, were borne by the company on behalf of M/s Sukhmani Construction and for Phase-II, i.e. sale, the entire expenses were borne by the assessee company. As per the development agreement dt. 28th Nov., 2003, it was agreed upon that the developer would deposit with the owner a sum of &#837....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s as mentioned in cl. (1) of Phase-II, sale building of the agreement, the assessee company had agreed and confirmed having deposited with the owner a further sum of ₹ 1,28,80,000 refundable by the owner in the manner stated for a period of fifteen months as security deposit for the development of the project and the owners shall have to pay interest at the rate of 12 per cent per annum from the date of payment of the same amount by the developer to the owner until completion or the construction of the said building. However, on subsequent development, the Slum Rehabilitation Authority and the Urban Land Development Department of Maharashtra refused to grant FSI vide letter dt. 29th Oct., 2003, as the project was legally not practicab....