2013 (4) TMI 974 - AT - Income Tax

Summary

Issues involved: Appeal against order of CIT(A) u/s 143(3) for AY 2009-2010, claiming deduction u/s 80IB(10) of the I.T. Act.

Ground 1: Assessee claimed order by CIT(A) & Assessing Officer contrary to material in record and provisions of the Act, unjust, bad in law, and without jurisdiction.

Ground 2: CIT(A) held assessee not a developer and builder but a contractor.

Ground 3: CIT(A) disallowed deduction claim u/s 80IB(10) of Rs. 88,17,665/-.

Ground 4: CIT(A) did not quash proceedings u/s 271(1)(c) of the I.T. Act.

The assessee was engaged in a housing project and claimed deduction u/s 80IB(10) for the year. The Assessing Officer denied the claim, stating the assessee was a contractor, not a developer. CIT(A) upheld this decision, citing incomplete construction by the due date. The Tribunal reviewed arguments, documents, and agreements. It found the assessee to be a developer, with the project completed before the deadline. The Assessing Officer's objections were based on sale deed prices, not actual development activities. The Tribunal noted the agreements were for buyers to obtain loans, not indicative of incomplete construction. The Tribunal ruled in favor of the assessee, directing the deduction u/s 80IB(10) to be allowed, as per previous approvals and completion certificates.