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2016 (3) TMI 725 - ITAT CHENNAIEntitlement to deduction under sec.80IB - Held that:- The assessee entered into construction agreement with the prospective buyers, who has no choice of giving the construction to another builder and thereafter, the assessee constructed the building as per the approved plan and provided various amenities common to all people. Therefore, looking into the entire transaction, as such, it is a development of housing project by the assessee itself and no one awarded any work to the assessee. Even if, there is an enabling clause in the partnership deed to do the works contract, that cannot be a reason to conclude that the assessee undertook works contract. Further, in similar circumstances, the Tribunal, in the case of Sanghvi & Doshi Enterprises v. ITO (2011 (5) TMI 597 - ITAT, CHENNAI ) has taken a similar view, wherein it was held that where the assessee entered into a joint development agreement to build up a housing project on land owned by some other person and assumed all risks that are assumed by a developer, then the assessee was entitled to deduction under sec.80IB of the Act. - Decided in favour of assessee.
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