2011 (12) TMI 586

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....sioner of Income-tax (A)-XV, Ahmedabad has erred in law and on facts in directing the Assessing Officer to allow the assessee's claim for deduction of Rs. 33,99,602/-.   2) The ld. Commissioner of Income-tax (A)-XV, Ahmedabad has erred in holding that the assessee fulfills the conditions laid down for claiming deduction u/s.80IB(10) even when the land was in the name of Prashant Jayantilal Shah & others. The land owners are a separate legal entity in the eye of law and the assessee entered into the project by a development agreement with the land owners. The entire responsibility to execute the housing project and abide by the terms and conditions of its approval right from the inception of the project till its completion rests with....

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....s per the said plan. That, the assessee was allowed to enroll prospective buyers as the Members. That, the assessee was allowed to collect the consideration for land as well as super-structure from the buyers. That, the assessee was allowed to retain the consideration received for construction, etc. That, the assessee was to construct and transfer the houses to the members. It has also been informed that since the land owners had no experience of construction, therefore they have entered into the said development agreement with the assessee-firm and it was allowed to construct the houses on behalf of the land owners as per the terms narrated in the said agreement. The Assessing Officer has expressed that as per the land documents, it was cl....

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....CIT(Appeals). 5. We have heard both the sides and also perused the orders of the authorities below. Undisputedly, this very issue has been adjudicated upon by the Respected Co-ordinate Bench ITAT Ahmedabad in the cases of Radhe Developers & Ors. Vs ITO, reported as 113 TTJ 300 (Ahd.), [in ITA No. 2482/Ahd/2006] and ITO vs. Shakti Corporation in ITA No.1503/Ahd/2008 for A.Y. 2005-06, dated 07/11/2008. On the basis of those decisions, now the Respected Co-ordinate Benches are allowing the claim of the assessee as it was pronounced by the ITAT Ahmedabad "D" Bench in the group of cases titled as ITO vs. M/s.Shreeji Developers, ITO vs Parth Developers, ITO Vs. M/s.Maitree Developers, ITO vs. M/s.Sun Developers, ITO vs. M/s.Rudrakash Developer....