TaxTMI 
TaxTMI 
2021 (2) TMI 344
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....was controlled and possessed by land owners before execution of sale as clear from sathakhat and controlled and possessed by society thereafter. 3) Whether just one of three persons who made a sathakhat with original land owners as purchasers, become one of seven partners of newly formed firm, firm can be said as beneficial owner of land. 4) Whether, ld CIT(A) was justified in relying the false English version of MOU between Rituvan Co-operative society and assessee without giving opportunity to AO to check the correctness of translation from Gujarati to English, despite the fact that assessee's English translations has been condemned by hon'ble ITAT itself in that order. 5) Whether a person who make some expenses which are reimbursable in nature can be considered a proof of development activity by assessee. 6) On the facts of circumstances of cases appearing from shathakhat, partnership deed, MOU between assessee and society, Rajachitthi issued by SMC, BUC issued by SMC, and AOs order, ld CIT(A) has erred in deleting the disallowance made by AO. 2. Brief facts of the case are that the assessee is a partnership firm. During the rele....
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....ng up the Co-operative Society, and iii) what was the correct factual position, if Rutvan Co-operative Housing Society engaged in the business of construction or not. It was further noted by the AO that during the notice under section 263 of the Act, the assessee is in its written submission before the ld. CIT contended that assessee paid a sum of Rs. 14.38 lakhs as a consideration for purchase of land and further paid the stamp duty and registration fees and Rs. 2.24 lakhs. Thus, the assessee paid total consideration of Rs. 16.63 lakhs. The Co-operative Society was formed by the efforts of the assessee. About the contents, sale deeds, the assessee filed before the ld. CIT, the declaration of land owner who allegedly sold the land, wherein it is mentioned that land under consideration was sold by the seller to the Society and the assessee is a confirming party. However, sale deed was executed in favour of society at the instance of assessee as confirming party. This was done without availing any extra monetary consideration. The assessee on the basis of aforesaid facts claimed before the ld.CIT for entitlement of deduction under section 80IB(10) of the Act. The assessee further cla....
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....held that assessee failed to substantiate the necessary criteria for claiming deduction under section 80IB(10) of the Act. The assessee simply engaged in the construction business and executed job on behalf of Co-operative Society. Thus, the assessee failed to fulfill the condition for eligibility for deduction under section 80IB(10) of the Act. 8. On appeal before the ld.CIT(A), the action of AO was reverse. The Ld. CIT(A) while granting relief to the assessee held that the assessee is a developer, the building plan was approved at the instance of the assessee, the area of development of housing project is more than one (01) acre, the project was completed before 31.03.2003. The commercial area is less than 3%. The assessee was having dominant control over the project and ncurred all expenses for construction, engaged architect, book seller flats, collected revenue, got clearance certificate from authorities concerned , all risk and rewards with the assessee. The ld. CIT(A) also held that decision of Hon'ble Gujarat High Court in CIT Vs Radhe Developers in 341 ITR 403 is squarely applicable on the case of the assessee. Thus, aggrieved by the order of ld.CIT(A), the Reven....
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.... registration charges was paid by the assessee. In the sale deed, the fact that land was agreed to be sold to the confirming party (assessee), on the instance of assessee, the sale deed was agreed to be executed in favour of the Co-operative Society. Thus, to make a clear cut title for the land in favour of society, the assessee signed as a confirming party being a party to the sale deed. The copy of sale deed of land on which the project is completed is placed on record. To comply with the provision of Gujarat Ownership Act 1973, the assessee firm conveyed land from owner to the society. The entire sale consideration was paid by the assessee. The entire risk was of assessee. The ld.AR for the assessee further reiterated that assessee paid the cost of land, entire expenses of registration, stamp duty were borne by assessee. The necessary fees for approval of sanction plan was paid by the assessee, entire expenses of development project wise such as material cost, labour charges, admin charges has been incurred by the assessee. Assessee firm appointed various contractors for carrying out physical construction and incidental work on the site. All other allied services were underta....