TaxTMI 
TaxTMI 
2021 (7) TMI 112
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....ect of the assessment years 2006-07, 2007-08, 2008-09 & 2009-10 on the file of the Income Tax Appellate Tribunal, Chennai "B" Bench, the Revenue has filed the above appeals. 2.The appeals in T.C.A.Nos.387 to 390 of 2013 were admitted on the following substantial questions of law: "1)Whether on the facts and circumstances of the case, the Tribunal was right in holding that the assessee had satisfied the conditions laid down under the Section 80IB(10) and is eligible for deduction said under 80IB(10)? 2)Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that assessee who is only a owner of the land and had out sourced the work of constructing the building and had realised the sale proceeds in th....
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.... of 2013 are concerned, Mr.M.Swaminathan, learned senior standing counsel appearing for the appellant - Revenue fairly submitted that the questions of law involved in these appeals were already decided by the Hon'ble Division Bench of this Court in the judgment reported in [2019] 103 taxmann.com 425 (Madras) [Bashyam Constructions (P) Ltd., Vs. Deputy Commissioner of Income Tax, Corporate Circle - 1 (2), Chennai] wherein the Division Bench held as follows: "... 8.As noticed by the Court in the case of Shravanee Constructions (supra), the assessee contributed land, undertook development activity in the land and has complied with all the conditions, thereby being entitled to the benefit under Section 80IB(10) of the Act. The assessee....
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....and the terms of the joint development agreement, as in the instant case, decided the question in favour of the said assessee in the following terms:- "30. ....... Thus, seen in the background of the data available as regards the date of sale, the clause in the agreement between the owner of the land and the assessee and the sale agreement with the prospective purchasers, it is evident that what the assessee had undertaken is not a mere construction, but developing and construction of a project, which qualifies for a deduction under Section 80IB of the Income Tax Act. As rightly pointed out by learned Senior Counsel appearing for the assessee, a bare reading of Section 80IB of the Income Tax Act shows that the deduction contemplated ther....
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....such provision would be aimed at giving encouragement for providing units in the urban and semi-urban areas, where there is perennial and acute shortage of housing, particularly, for the middle income group citizens. To ensure that the benefit reaches the people, certain conditions were provided in sub- Section (10) such as specifying date by which the undertaking must commence the developing and construction work as also providing for the minimum area of plot of land on which such project would be http://www.judis.nic.in put up as well as maximum built up area of each of the residential units to be located thereon. The provisions nowhere required that only those developers who themselves own the land would receive the deduction under Secti....
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....out that the decision of the Division Bench in the case of Sanghvi and Doshi Enterprise (supra) was affirmed by the Hon'ble Supreme Court as reported in (2017) 84 taxmann.com 241 (SC). ... 21.The correctness of the above finding was not considered by the Tribunal and the Tribunal merely stated that no expenses were recorded in the P & L account. Therefore, the contention advanced by the Revenue in this regard is not tenable. That apart, a plain reading of Section 80IB(10) of the Act evidently makes it clear that deduction is available in a case where an undertaking develops and builds a housing project. The Section clearly draws the distinction between 'developing' and 'building'. In the preceding paragraphs, we ha....