2016 (3) TMI 1085

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....l Punmiya PER Rajendra A.M.- Challenging the order of CIT (A)-16, Mumbai, dated 12/09/2011, the assessing officer (AO) has filed the present appeal. The effective ground of appeal is about 80 IB(10) of the Act. Assessee-company, engaged in the business of builders and developers,filed its return of income on 31/10/2010 declaring total income of Rs. 25.89 lakhs. The AO completed the assessmen....

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.... the developer, that the assessee was not owner of the plot, that the claim made by it in respect of the profits derived from developing and building housing project was not allowable. 3. Aggrieved by the order of the AO, the assessee preferred an appeal before the first appellate authority (FAA). Before him it was argued that deduction u/s.80 IB (10) was not dependent on ownership, that deduct....

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....nt 22.5% of the gross sales receipt in respect of sale of flats and other premises constructed by utilisation of FSI were to be received by the owners and balance belonged to the assessee company,that all the efforts to develop the plot of land were made by the assessee and not by the owner of the land,that it had incurred all the expenses towards development of land and construction of multistory....

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....at High Court in the case of Radhe Developers (ITR) has held as under: "Section 80-IB(10) of the Income-tax Act, 1961, requires involvement of an undertaking in developing and building housing projects approved by the local authority. Certain conditions are prescribed in sub-section (10) such as the date by which the undertaking must commence the developing and construction work and the minimum....