2016 (7) TMI 312

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.... on facts in directing the Assessing Officer to allow the Assessee's claim for deduction of Rs. 21,37,718/- u/s.80IB(10) of the I.T. Act. 2). The Ld. Commissioner of Income-Tax (Appeals)-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 Vrundavan (Naroda) Co.-Op. Housing Society Ltd., which is a seperate legal entity in the eye of law and the Assessee entered into the project by a development agreement with the Society. 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 the Society. The local Authori....

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....e of the view that the monetary limit prescribed by the instructions of the aforesaid CBDT Circular would be applicable to the present appeal of the Department and therefore the present appeal is not maintainable on account of low tax effect. In such circumstances, we dismiss the appeal of Revenue without expressing any opinion on merits of the case. 5. In the result, the appeal of Revenue is dismissed. 6. For Assessment Year 2008-2009, the Revenue has taken following grounds of appeal:- "1). The Ld. Commissioner of Income-Tax (Appeals)-XV, Ahmedabad has erred in law and on facts in directing the Assessing Officer to allow the Assessee's claim for deduction of Rs. 1,10,93,292/- u/s.80IB(10) of the I.T. Act. 2). The Ld. Commissioner o....

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....y, the order of CIT(A) be set aside and that of Assessing Officer be restored. On the other hand, ld. A.R. supported the order of CIT(A). 10. After going through rival submissions and material on record, we find that land bearing survey no.593/2, having total area of 12444 sq. mtrs., out of it 11609 sq. mtrs. was purchased by the Vrundavan (Naroda) Co-operative Housing Society Ltd. on 16.10.2006 for consideration of Rs. 48,59,400/-. As per the application and plan filed by the Society, the local authority accorded permission for development and construction of the project to Shri Uday Bhatt, power of attorney of Shri Pramukhbhai Chinubhai & Others i.e. original land owners on 25.05.2005. Assessing Officer examined the development agreement....