9911796707
TMI Blog2016 (5) TMI 1184X X X X Extracts X X X X X X X X Extracts X X X X ..... /03/2012 of the First Appellate Authority, Mumbai, on the ground that the Commissioner of Income Tax (Appeal) erred in holding that the assessee is eligible for deduction u/s 80IB(10) of the Income Tax Act, 1961 (hereinafter the Act), amounting to ₹ 2,05,64,463/- (A.Y. 2008-09) and ₹ 2,92,59,341/- (A.Y. 2009-10), without appreciating that the conditions stipulated in the section are not fulfilled by the assessee. 2. During hearing of these appeals, Shri Vimal Punamiya, ld. counsel for the assessee, at the outset, claimed that the impugned issue is covered in favour of the assessee by the order of the Tribunal dated 22/03/2016 for Assessment year 2007-08 (ITA No.8260/Mum/2011). This factual matrix was consented to be correct b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t owner of the plot, that the claim made by it in respect of the profits derived from developing and building housing project was not allowable. 3. Aggrieved by the order of the AO, the assessee preferred an appeal before the first appellate authority (FAA). Before him it was argued that deduction u/s.80 IB (10) was not dependent on ownership, that deduction was allowable if the profits were derived from the business of developing and construction of residential unit, that there was no requirement in the provision that the assessee carrying on the said business should also on the plot of land. After considering the submission of the assessee and the assessment order, the FAA referred to the provisions of section 80 IB(10) of the Act a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot necessary. 5. We have heard the rival submissions and perused the material before us. We find that the Hon ble Gujarat High Court in the case of Radhe Developers (ITR) has held as under: Section 80-IB(10) of the Income-tax Act, 1961, requires involvement of an undertaking in developing and building housing projects approved by the local authority. Certain conditions are prescribed in sub-section (10) such as the date by which the undertaking must commence the developing and construction work and the minimum area of plot of land on which such project would be put up as well as the maximum built up area of each of the residential units to be located thereon. The provisions nowhere require that only those developers who themsel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee has purchased the land and developed the housing project at its own. We find that the Tribunal in aforesaid order dated 22/03/2016, following the decision from Hon ble Gujarat High Court in Radhe Developers (341 ITR 403) and SLP filed by the Department was dismissed by Hon ble Apex Court holding that ownership of the plot is not necessary for availing the claimed deduction u/s 80IB(10) of the Act. Thus, respectfully following the aforesaid decision from Hon ble Gujarat High Court and the decision of the Tribunal, that too in the case of assessee for Assessment year 2007-08, we find no infirmity in the conclusion of the Commissioner of Income Tax (Appeal), thus, both the appeals of the Revenue are dismissed. Finally, the appeals of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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