2016 (7) TMI 818

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....deletion of Rs. 17,08,263/- and Rs. 30,99,640/- under section 80IB(10) of the Income Tax Act, 1961 in the Asstt.Years 2004-05 and 2005-06 respectively. The ld.AO has disallowed the claim of the assessee in these years. 3. With the assistance of the ld.representative, we have gone through the record carefully. It emerges from the record that this dispute earlier travelled to the Tribunal vide ITA No.3686/Ahd/2007 and 2371/Ahd/2008 for the Asstt.Years 2004-05 and 2005-06. The Tribunal has decided both the appeals vide order dated 1.2.2011. The Tribunal has set aside the issue to the file of the AO for re-adjudication. The relevant part of the Tribunal's order reads as under: "Since both the parties agreed that the matter needs to be rec....

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....reafter passed assessment order on 30.12.2011. The assessee has submitted various details. The AO reproduced them in the assessment order and some of the figures reproduced at page no.11 and 12 of the assessment are totally illegible. The AO did not make any elaborate analysis of the details as per the directions of the Tribunal, rather, arrived at some conclusion which had arrived in the original assessment orders. His stand is that as per clause-9 of the agreement, the assessee was to receive fixed percentage of remuneration. It is not the owner of the land, and therefore, cannot be termed as developer. Accordingly, the ld.AO disallowed deduction to the assessee. 5. On appeal, the ld.CIT(A) has gone through the development agreement, a....

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....society to meet financial requirement. They will be also able to borrow funds on interest from outside parties, financial institutions, banks and for that they will be able to sign any promissory note, receipts, hundi, mortgage, lease or any other negotiable instruments. 4. The party of second part shall have right to register the individual, firms, companies and joint persons who are willing to be members of the society and determine the price for' units registered for them. The party of the second part will be able to enter into settlement with the members for collection of contribution from time to time, to give them acknowledgement receipt for contribution received from them. For the smooth completion of project, the party of the....

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....e party of the second part shall be totally responsible for any act and the party of the first part will not be responsible for any additional financial or any other liability or loss. The party of the second part shall not claim any compensation from the party of second part shall for any additional financial or other responsibility. Accordingly, the party of the second part shall have all the rights and responsibility for the development. 9. For responsibility carried out by the party of the second part for the development and construction of residential units on the land belonging to the party of the first part for its members, it will get remuneration @ 15% on the contribution collected. In short, if party of the second part collects....