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TMI Blog2014 (6) TMI 704X X X X Extracts X X X X X X X X Extracts X X X X ..... in terms of the agreement - simply because the land was not owned by the developers it has consistently been held is not a relevant criteria to disallow the deduction claimed – Relying upon Commissioner of Income-tax Versus Radhe Developers [2011 (12) TMI 248 - GUJARAT HIGH COURT] – the order is set aside and the assesse is entitled for the claim of deduction u/s 80IB(10) of the Act – Decided in favour of Assessee. - ITA No. 1191/Ahd/2011 ITA No. 1192/Ahd/2011 ITA No. 1193/Ahd/2011 - - - Dated:- 9-6-2014 - Shri N. S. Saini And Shri Kul Bharat,JJ. For the Petitioner : Shri K. C. Mathews, Sr. DR For the Respondent : Shri M. K. Patel, AR ORDER Per Shri N. S. Saini, Accountant Member: These are the appeals fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... missioner of Income Tax(Appeals) and dismissed the appeal of the Revenue. He further submitted that in the present years under consideration, the project remains the same on which the assessee has claimed deduction u/s. 80IB(10). He further submitted that the Revenue has not filed any further appeal to the High Court against the order of the Tribunal for Assessment Year 2002-03 and 2003-04. Thus, the issue has attained finality and therefore, following the order of the Tribunal in the present years of the appeal also, deduction u/s. 80IB(10) should be allowed to the assessee. 5. The Departmental Representative could not controvert the above submissions of the Authorized Representative of the assessee. 6. We find that the Tribunal in A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar in appeal the appellant has carried out labour contract work and supervision work for construction of flats for the three Co. Op. Housing societies i.e. Pink City (Ranip) Co. Op. Housing Society Ltd., Kailasnath (Ranip) Co. Op. Housing Society Ltd. and Prakarsh (Ranip) Co. Op. Housing Society Ltd. I find that the appellant has satisfied all the three conditions required for deduction u/s. 80IB of the I. T. Act. The appellant has provided the funds to the societies for acquiring the land in their names and the societies had paid the sale consideration to original land owners. The appellant got the land converted by N.A./NOC proceedings. In turn, the development right was given to the appellant. The development charges of more than Rs. 25 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as the members of society do not have any knowledge or expertise in construction and development work and for effective and timely completion of scheme such society engaged reliable and experienced developer/contractor and labour contractor; by an agreement by stipulating certain conditions. Thus the society in this case has entrusted the construction and labour work to the appellant firm as per the terms and conditions laid down in the development and labour agreement. In a normal course of construction business, the society has to bear the expenses in respect of Electricity connections, wire lines and legal expense incurred for the land etc., as the A.B.C. connections are to be obtained in the name of the society. Land is also purchased b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ied out by the assessee as contractor, it cannot be said that the assessee had no developed infrastructure facility and for availing deduction under section 80-IA, 'infrastructure facility' should not necessarily be owned by the assessee. It is also found that the wordings of Section 80IA(4) and 80IB(10) are similar. Relying on the ratio laid down in the said case, the appellant is held to have carried out the development work. Accordingly, the Assessing Officer is directed to allow deduction u/s. 80IB(10) to the appellant. 7. In the light of the above facts both the parties have been heard although the Ld. D.R. placed reliance on the assessment order, however, confronted with the order of the Tribunal in the case of Radhe Devel ..... X X X X Extracts X X X X X X X X Extracts X X X X
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