Case Law Details
Anjli Foundations Vs ITO (ITAT Chennai)
Since, the assessee transferred/assigned 50% of the property to the developer, the assessee owned only 25 cents or half-acre as against one acre as per the condition laid down in section 80IB(10), the assessee’s Profit and Loss Account showed that on the gross sale value of Rs. 4,07,53,750/-, only bank charges of Rs. 1,625/- was debited. Since no other expenses were incurred towards the construction of flats as per the agreement, the assessee firm is neither a builder nor a developer for claiming the deduction and accordingly disallowed the claim. Aggrieved, the assessee filed an appeal before the CIT(A). The Ld. CIT(A) held, inter alia, that the Hon’ble Madras High Court in the case of CIT vs Sanghvi & Doshi Enterprises 255 CTR 156 has held that ownership of the land is not a criterion to decide the status of the developer to claim the deduction u/s. 80IB(10), this decision supports the view that both developer and landowner can claim the benefit of deduction u/s 80IB(10) in respect of their shares, the deduction is available for the project and not for the individual assessee and accordingly allowed the appeal.
FULL TEXT OF THE ITAT JUDGEMENT
The Revenue filed this appeal against the order of the Commissioner of Income Tax (Appeals)- 12, Chennai, in ITA No. 274/CIT(A)-12/2013-14 dated 28.12.2018 for assessment year 2010-11.
2. The Revenue filed this appeal belatedly by one day. It was pleaded that the relevant assessment records and other documents which were in transit from the higher authorities were received only on 18.03.2019 and the appeal was filed on the next day which caused one day delay which is due to the circumstances beyond the control and hence pleaed to condone the delay.
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