TaxTMI 
TaxTMI 
2021 (8) TMI 362
X X X X Extracts X X X X
X X X X Extracts X X X X
.... in disallowing deduction of Rs. 59,80,995/- claimed by assessee u/s 80IB(10) of the IT Act, 1961. 2. Brief facts of the case are that assessee is an individual and engaged in the business of travel agent under the name & style of proprietary concern "M/s Govindji Patel & Co." and also in development & building of housing project. The assessee filed his return of income for AY 2013-14 declaring total income of Rs,.6,75,629/-. During the year, the assessee undertook a development of housing project and claimed deduction under section 80IB(10) of the Income Tax Act 1961, ('the Act' for short). The assessee developed housing project in the name of "Hampton Park" alongwith his mother. The assessee and his mother were having 50% shareholding in housing project. The assessee in his computation of income claimed deduction under section 80IB(10) of Rs. 59,80,995/-. During the assessment, Assessing Officer issued show cause notice that the assessee has not shown development activities in his books of account. In response to show cause notice, the assessee contended that he has undertook to development of housing project alongwith his mother in the name of "Hampton Park". It was further exp....
X X X X Extracts X X X X
X X X X Extracts X X X X
....12-13 and 2013-14 respectively. The Ld. AR of the assessee placed on record copy of decisions of Tribunal. 5. On the other hand, Ld. Sr.DR for the Revenue relied upon the order of authorities below. 6. We have considered the rival submission of both the parties and have gone through the order of authorities below. We have also deliberated on the decision of Tribunal (authored by the same combination) in assessee's coowner's case (mother of assessee), wherein on identical set of fact in assessment year 2013-14 the Tribunal passed the following order:- "4. We have considered the contention of both the parties and perused the order of Lower Authorities carefully. We have noted that the Id.CIT(A) in para 6.1.2 confirmed the disallowance under section 80IB of the Act by following his predecessor's decision on identical facts for AY 2011-12 i 2012-13. We have further noted that the assessee filed appeal against the order of Id.CIT(A) for A.Y. 2011-12 and assessee was allowed deduction under section 80IB of the Act in order dated 24.10.2019 in ITA No.2476/AHD/2014. Further, while following the order of the Tribunal for A.Y. 2011-12, the assessee was further allowed similar relief in....
X X X X Extracts X X X X
X X X X Extracts X X X X
....sessee and her son and approval of housing project has been granted accordingly. Thus, the assessee and her son are the co-owners of the land and the subsequent development of housing project in the name of "Hampton Park" on the impugned land is also in the status of co-ownership of the assessee and her son. The assessee has developed the housing project and claimed deduction u/s.80IB of the Act in respect of this housing project as co-owner. We Further, notice that the assessee has filed report in Form No. 10 CCB in support of claim of deduction u/s. 801B(10) of the Act. This report requires the assessee to state ownership status of the undertaking/ enterprise in SL No. 4 of the Form. This Form specifically requires assessee to state as to whether the undertaking (enterprise is fully owned by the assessee or partly owned by the assessee and also the percentage on ownership. Thus, even Form No. 1OCCB very well recognize the fact that undertaking can be held in co-ownership, otherwise the Form would not specifically require assesses to state as to whether the undertaking his fully owned or partly owned by the assessee in S.No.4 of this Form the assessee has clearly stated, tha....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f profit as per provision of section 80IB (10). The AO declined the benefit of deduction to the assessee on the premise that deduction u/s. 80IB(10) was available only to an undertaking engaged in developing and building house project subject to fulfilment of conditions laid down in subsection (10) of section 80IB. It is settled law that owner of the land as well as developer of the land both were eligible for claiming deduction under section 80IB(10) in respect of housing project where the owner contributes the land as well as resources to develops the housing project. Thus, assessee was also eligible for claiming deduction under section 80IB(10) as it full fills all the conditions laid down under section 80IB.The learned counsel for the assessee has relied in the case of Sudhir Nagpal and Others Vs. ITO 349 ITR 636 (P & H) wherein agricultural land was inherited by the co-owners from their forefather and general power of Attorney was executed by all the co- owners in favour of the "S" appointing him to construct plinth on their joint agricultural land in the name of all the owners and to further lease out such open plinth to any party on their behalf In this case, the issue came ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....w that the assessee was a builder and developer. It carried out the project for developing the land held by assessee. Assessee received his share of profit from the same and claimed deduction of her share of profit as per provision of section 80IB (10). The AO declined the benefit of deduction to the assessee on the premise that deduction u/s. 80IB(10) was available only to an undertaking engaged in developing and building house project subject to fulfilment of conditions laid down in subsection (10) of section 80IB. It is settled law that owner of the land as well as developer of the land both were eligible for claiming deduction under section 80IB(10) in respect of housing project where the owner contributes the land as well as resources to develops the housing project. Thus, assessee was also eligible for claiming deduction under section 8OIB(10) as it fulfils all the conditions laid down under section 80IB.The learned counsel for the assessee has relied in the case of Sudhir Nagpal and Others Vs. ITO 349 ITR 636 P & H) wherein agricultural land was inherited by the cc-owners from their forefather and general power of Attorney was executed by all the co-owners in favour of the "....
X X X X Extracts X X X X
X X X X Extracts X X X X
....;ble High Court observed as follows: "8. In terms of the agreement, which are not in dispute, the assessee not only undertook the aforesaid development activities on the land in question, but in fact, he entered into an agreement of sale with the owners of the land, paid the entire consideration but he did not take a registered sale creed in his name. On the contrary, the procedure adopted is he in turn entered into a joint development agreement with the builder and the owner of the land made a party to the said proceedings. Thus, the assessee contributed the land, undertook the aforesaid developmental activities in the said land and thus, complied with all other conditions, which have to be fulfilled before chiming benefit under Section 80IB(10) of the Act The builder has invested the. The money in the construction, it is after completion of building in terms of the agreement, the assessee was given. 2.2% share of the building area, it is after safe of he built area, in terms of Section 80IB (10), the assessee is chiming deduction. As is clear from the development agreement the undertaking of developing building housing project was jointly undertaken by the assessee and the buil....