Case Law Details
ITO Vs Anjli Foundations (ITAT Chennai)
The undisputed fact in this case is that the assessee is owner of the land. Therefore, for claiming the deduction u/s. 80IB(10), the assessee has to establish that it had undertaken developmental activities which include activities like undertaking the levelling the road and removal of rock surface in the said land and making the land usable for the purpose of construction of the apartment complexes, where the nature of land is agricultural getting the land converted into non-agricultural land, engaging professional help for designing and architectural work, obtaining the permission/sanction for the construction, providing roads, supervising the construction activity, enrolling members and collecting charges, sharing of responsibility and risk associated with developing and building housing projects approved by the local authority etc.
From the order of AO it is clear that the assessee is the owner of the land , as a owner of the land all that it was entitled to on the terms of the agreement between the parties was for the undivided share of the land measured in terms of the built-up area and it had no interest in the development or in the cost of construction, which the Developer alone had to bear. As is evidenced by its P&L account also, the assessee has not incurred any cost towards any developmental activity. It has not established either before the lower authorities or before us that it had undertaken developmental activities either as a Owner or as a Developer or Jointly . As a owner of the land , there was no risk to the assessee and its interest was in the realisation of the potentialities by way of encashing the past investment made etc. Therefore , the assessee has not made out a case that it is entitled for the deduction claimed u/s 80-IB(10) and hence the Revenue’s appeal is allowed.
FULL TEXT OF THE ORDER OF ITAT CHENNAI
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.
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