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TMI Blog2013 (4) TMI 786X X X X Extracts X X X X X X X X Extracts X X X X ..... {B} Whether the assessee firm is entitled for claiming deduction under section 80IB (1) r/w. Section 80IB (1) and rule 18BBB as the assessee firm has not fulfilled the condition mentioned in the above mentioned section ? Short issue is with respect to the assessee s claim of deduction under Section 80IB [10] of the Incometax Act, 1961 { Act for short}. Revenue s objection to such deduction appears to be that the assessee did not own the land on which the Housing Project was developed and that therefore, such deduction was not allowable. We had, in a judgment in case of Commissioner of IncomeTax v. Radhe Developers, reported in [(2012) 341 ITR 403 (Guj)], dealt with such an issue in the following manner : 30. The essence of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing residential units thereon as per the plans approved by the local authority. It was specified that the assessee would bring in technical knowledge and skill required for execution of such project. The assessee had to pay the fees to the Architects and Engineers. Additionally, assessee was also authorized to appoint any other Architect or Engineer, legal adviser and other professionals. He would appoint Sub-contractor or labour contractor for execution of the work. The assessee was authorized to admit the persons willing to join the 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, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o develop the housing project by not only putting up the construction but by carrying out various other activities including enrolling members, accepting members, carrying out modifications engaging professional agencies and so on. Most significantly, the risk element was entirely that of the assessee. The land owner agreed to accept only a fixed price for the land in question. The assessee agreed to pay off the land owner first before appropriating any part of the sale consideration of the housing units for his benefit. In short, assessee 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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