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2014 (10) TMI 425 - ITAT AHMEDABADClaim of deduction u/s 80IB(10) on sale of houses – AO had denied the claim of deduction u/s. 80IB(10) to the assessee for the reason that the assessee was not the owner of the land and was merely a contractor - Held that:- Following the decision in M/s. Satsang Developers Versus ACIT, Circle-2(2), Baroda [2014 (5) TMI 184 - ITAT AHMEDABAD] - the claim of the assessee for deduction u/s.80-IB (10) of the Act cannot be declined if other conditions are being satisfied - the land was sold separately along with partial and unfinished construction flats and, thereafter, construction agreement was entered into to carry out the balance construction work - such agreement for construction to complete the balance work is only an incidental facilitation to protect interest of the parties and the assessee is eligible for deduction u/s. 80-IB(10) of the Act - the assessee had chosen to register the plot in the name of the buyer on payment of specified amount in order to achieve cost saving and to ensure reliability and the assessee had needed to construct the house as per building plan obtained in the name of plot-owners on payment of subsequent installments - the assessee had also developed various public amenities within the project – the assessee is eligible for deduction u/s 80IB – Decided in favour of assessee.
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