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TMI Blog2013 (8) TMI 112X X X X Extracts X X X X X X X X Extracts X X X X ..... p between the assessee firm and the end users of the unit was that of "work contract"? (B) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in upholding the decision of the CIT(A) and thereby deleting disallowance under section 80-IB(10) on the income received as interest on delayed payments and income by way of amount written off out of payments to contracts/suppliers and employees which was not directly derived from the sale of residential units or part of cost of the unit and was shown by the assessee himself as 'other income'?" 2. Insofar as question (A) is concerned, same is possible of summary disposal. It pertains to Revenue's stand that assessee cannot claim dedu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scheme. The assessee was authorised to receive the contributions and other deposits and also raise demands from the members for dues and execute such demands through legal procedure. In case, for some reason, the member already admitted is deleted, the assessee would have the full right to include new member in place of outgoing member. He had to make necessary financial arrangements for which purpose he could raise funds from the financial institutions, banks etc. The land owners agreed to give necessary signatures, agreements, and even power of attorney to facilitate the work of the developer. In short, the assessee had undertaken the entire task of development, construction and sale of the housing units to be located on the land belongin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... took the full risk of executing the housing project and thereby making profit or loss as the case may be. The assessee invested its own funds in the cost of construction and engagement of several agencies. Land owner would receive a fix predetermined amount towards the price of land and was thus insulated against any risk. 37. By no stretch of imagination can it be said that the assessee acted only as a works contractor..." 3. Such a question is therefore, not required to be considered. 4. Coming to question (B), Revenue's stand is that a total sum of Rs.11,05,556/- did not represent the assessee's claim from development of housing project and such amount therefore, was not eligible for deduction under section 8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s.1,72,829/- included in "Pratham Upvan" project is not considered eligible for deduction u/s 80IB(10). Hence, the deduction u/s.80IB(10) allowed to Pratham Upvan Project is restricted to Rs. 4,16,33,619/-(Rs. 4,18,06,448-Rs. 1,72,829). The disallowance of Rs.11,05,056/- made by the Assessing Officer is directed to be deleted." Since ld. CIT(A) has given relief to the assessee as the issues involved in this ground were either covered by the decisions of Hon'ble ITAT, Ahmedabad Bench or of the jurisdictional High Court and earlier decision of ld. CIT(A) which were not appealed against by the Revenue, we feel no need to interfere with the order of ld. CIT(A) and the same is hereby upheld. This ground of the Revenue i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd without delay. Purchaser pays higher sale price if it delays payment of sale proceeds. In other words, this is a converse situation to offering of cash discount. Thus, in principle, in reality, the transaction remains the same and there is no distinction as to the source. It is incorrect to state that the source for interest is the outstanding sale proceeds. It is not the assessee's business to lend funds and earn interest. The distinction drawn by revenue is artificial in nature and is neither in consonance with law nor commercial practice." 6. With respect to the remaining amount covered under the discussion, balance written off out of the payments to contractors and suppliers, we notice that assessee had consistently taken a stand th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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