TaxTMI 
TaxTMI 
2017 (1) TMI 1867
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.... dated 18.03.2014 passed u/s. 143(3) of Income Tax Act, 1961(herein after referred to as "the Act) by the ITO-1(2) Bhopal [hereinafter referred to as the AO]. The assessee has taken following grounds of appeal:- 1. That on the facts and in the circumstances of the case and in law, the decision of the learned CIT(A) is materially incorrect, bad on facts, and unsustainable in law and his finding are materially incorrect. 2. That on the facts and in the circumstances of the case and in law, the appellant submits that its housing project fulfill all the conditions laid down in section 80IB (10) of the I.T. Act and, therefore, the income from such project is deductible under the said provisions. The learned CIT(A) erred and not....
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.... the circumstances of the case and in law, the levy of interest u/s. 234B is unlawful, hence, be cancelled. 2. The ground no. 1 to ground no. 5 are basically relates to confirming of the finding of the AO that the assessee has merely acted as contractor after selling plot and not as a developer, therefore, the assessee is not eligible for deduction u/s. 80IB(10) on the profits claimed for the projects for the reasons that the assessee has not registered the sale deeds in favour of the customers for the full value of units as agreed among them and not fulfilled the conditions of section 80IB(10) of the Act. Therefore, these are being considered together and decided by common finding for the sake of brevity and convenience. 3. Succinctl....
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....B(10) of the Act is allowable only to an undertaking developing and building housing project whereas the assessee could not be termed as an undertaking developing and building housing project as it had merely acted as a contractor to the customers to whom land was independently sold. The AO also relied on the decision in the case of Sky Builders & Developers vs. ITO1 (1) Bhopal [2011 14 taxmann.com 78 (Indore-Trib) in support of his view. The AO also noticed that the income of the assessee also included interest income of Rs. 4,25,627/- pertaining the income from other source not eligible for deduction u/s. 80IB(10) of the Act. The AO also noted that ld. CIT(A) has also dismissed the appeal of the assessee for A.Y. 2008-09 and 2009-10 by co....
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....allowance made under section 80IB (10) of the Act. 7. The learned Counsel for the assessee submitted the land admeasuring 6.024 hectares has been purchased and registered in the name of the assessee. NOC for mortgaged of land, release of land and the assessee obtained permission for development / approval of colony from Gram Panchayat obtained in the name of the assessee. The project completion certificate was also given in the name of the assessee. The assessee has adopted the modus operandi by which the assessee has agreed to sale complete constructed bungalow / flats with fixed built up area for the consideration agreed. The advertisement in name of the projects to enroll the customers in the project and received the booking amount ag....
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.... and section 53A of the Transfer of Property Act would lead to a situation where the land for the purpose of Income Tax Act,1961 deemed to have been transferred to the assessee. In that view of matter, for the purpose of income derived from such property, the assessee would be owner of the land for the purpose of said Act. It is equally true that such title would pass only upon execution of duly registered sale deed. However, for the limited purpose of these proceedings one is not concerned with the question of passing of the title of the property but only examining whether for the purpose of benefit under section 80IB(10), the assessee could be considered as the owner of the land in question. For the limited purpose of deduction u/s. 80IB ....
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....name of the assessee, the completion certificate issued by the concerned authorities was available before the learned Commissioner of Income tax (Appeal) and also before the Assessing Officer. However, the lower authorities brush aside these evidences. The learned CIT(A) choose to follow the decision of Sky Builders & Developers vs. ITO 1(1) Bhopal [2011] 14 taxmann.com 78 (Indore-Trb) and confirm the same by following the finding as given in earlier years. We are also aware told that the set aside assessments have been reframed by the AO by repeating the disallowance u/s. 80IB(10) of the Act. The assessee has filed an appeal, which is pending before the Commissioner of Income tax (Appeals) for the decision. Since the facts involved in this....