Case Law Details
Ashok G Patel Vs DCIT (ITAT Surat)
Form no. 10CCB clearly states that the undertaking is partly owned. Sale proceeds are also deposited equally in individual account. Deduction u/s 80IB(10) allowed
Facts-
The assessee undertook a development of housing project and claimed deduction u/s. 80IB(10). 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 u/s. 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. Assessee explained that the project development work was undertaken by in the individual name and accordingly deduction u/s. 80IB(10) of the Act claimed in the individual capacity. The books of account of assessee as well as other commission-owner (mother) are separate for housing project which are duly audited under section 44AB and 80IB of the Act. AO held that ROI is not filed by Association of Person (AOP) and that income of housing project “Hampton Park” earned by AOP and not in the status of co-ownership. Accordingly, the Assessing Officer disallowed the entire deduction under section 80IB(10).
Conclusion-
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