Case Law Details
ITO Vs Ms. Skyline Developers (ITAT Pune)
Conclusion: Assessee who had contributed land and engaged in the development of housing project with developer for development of the land was eligible for claiming deduction under section 80-IB(10) as both owner as well as developer were eligible for deduction under section 80-IB(10).
Held: Assessee was a builder and developer. It entered into joint venture agreement with B Builders for developing the land held by assessee. Assessee received his share of profit from the joint venture and claimed deduction of the entire income u/s. 80IB(10). 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 fulfillment of conditions laid down in sub-section (10) of section 80IB. Assessee had only provided land and the constructions activities were taken care of by B Builders. Since, the assessee was not builder and developer, therefore, assessee was not eligible to claim deduction u/s. 80IB(10). It was held assessee was not merely contributor of the land but was engaged in the development of housing project. Also, it was a well settled law that owner of the land as well as developer of the land both were eligible for claiming deduction under section 80-IB(10) in respect of housing project where the owner contributes the land and the other party develops the housing project. Assessee had also contributed towards the development of housing project and apart from that, assessee was purportedly instrumental in removing of encumbrances from land and marketing of flats. Thus, assessee was also eligible for claiming deduction under section 80-IB(10).
FULL TEXT OF THE ITAT JUDGEMENT
This appeal by the Revenue is directed against the order of Commissioner of Income Tax (Appeals)-II, Pune dated 31-03-2014 for the assessment year 2009-10.
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