TaxTMI 
TaxTMI 
2015 (4) TMI 1325
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....instant case, the CIT(A) has disallowed the deduction under section 80IB(10) of the Act on the ground that the assessee was acting as a contractor for the owner of the plots of land, on the ground that, the sale deed for land was executed in favour of the purchaser of the plots, and purchaser of the plots have entered into construction contract for construction of units. 4. The AR of the assessee has relied on the decision of this Bench of the Tribunal in the case of Narayan Reality Ltd. Vs. DCIT, in ITA No.2293/Ahd/2012 and 2095/Ahd/2013 for the Asstt.Year 2009-10 and 2010-11 vide order dated 2.5.2014 wherein the Tribunal has held that no disallowance can be made for deduction under section 80IB(10) by treating the assessee as a contrac....
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.... is not eligible for deduction u/s.80-IB(10) of the Act and similarly, the profit earned by the assessee for construction activities is not eligible for deduction u/s.80-IB(10) because the assessee is doing the construction as a contractor for a work and not as a builder or developer and, therefore, the assessee is not eligible for deduction u/s.80-IB(10) of the Act. Against these objections of ld.CIT (A), the assessee is in appeal before us. 5.2 Regarding the 3rd objection that the assesse has sold land to the unit holders separately and has done the construction units under a project agreement/contract, it was submitted that it is a joint activity although the agreement and land sale-deed are executed separately, but for this rea....
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....t on the same date when the sale deed was executed, a construction agreement was also entered into with the transferee for further construction of the same flats by the builder company itself. He submitted that the facts in the present case are similar. He also pointed out that in that case, it was held by the Tribunal that the stand of the Revenue with regard to the semifinished condition of the flats is devoid of any merit in as much as what is sought to be constructed and sold by the assessee is a residential units and what is sought to be purchased by the buyer is the ownership of the specified unit and registration of flat in semi-finished condition is only to facilitate the convenience of the parties and agreement for development and ....
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.... and as per separate agreement, agreed for construction for completion of balance work. Hence, the facts of this case are also similar because in that case also, the land was sold separately along with partial and unfinished construction of flats and, thereafter, construction agreement was entered into to carry out the balance construction work and under these facts, it was held by the Tribunal in that case that such agreement for construction to complete the balance work is only an incidental facilitation to protect interest of the parties and therefore, the assessee is eligible for deduction u/s.80-IB(10) of the Act. Similarly, in the case of Raghava Estates vs. Dy.CIT (supra) on which reliance was placed by the Id.AR of the assessee, the....