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TMI Blog2012 (11) TMI 1240X X X X Extracts X X X X X X X X Extracts X X X X ..... rn of income on 6.10.2009 admitting an income of ₹ 2,57,73,121/- before claiming deduction under section 80IB(10). The assessee claimed deduction on the entire amount declared as income under section 80IB(10) in respect of housing project at Ayanambakkam. The Assessing Officer, while completing the assessment, rejected the claim of the assessee under section 80IB(10) on account of non-submission of following documents by the assessee:- i) Planning permit for the project in favour of the assessee; ii) Building permit for the project in favour of the assessee. iii) Completion certificate for the project in favour of the assessee. The Assessing Officer vide assessment order dated 30.12.2011 raised a demand of ₹ 89,78,220/-. 3. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f of the assessee strongly supporting the order of the CIT(A) submitted that, the documents mentioned by the Assessing Officer were produced before the CIT(A). The counsel further submitted that the planning permit and completion certificate were duly obtained from the competent authority in the name of the land owners. The CIT(A) after perusing all the relevant documents came to the conclusion that the assessee is entitled for relief under section 80IB(10). The counsel for the assessee further contened that the assessee had invested money in the project and had undertaken the risk from the stage of acquisition of land till the sale of flats to the prospective buyers. The assessee had engaged contractors for the construction of the building ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 80IB). 7. A perusal of the above conditions shows that there is no further condition that such construction and development of the housing project should be on a land owned by the assessee undertaking. As far as the documents pointed out by the Assessing Officer is concerned, the CIT(A) in para 6 has categorically observed as under:- " I have also gone through the details furnished by the appellant including the approval and completion certificates issued by CMDA, sale and construction deeds, power of attorney executed in favour of Mr. Rajasekar, newspaper advertisement copies, promotional brochure, balance sheet and profit & loss account etc. The appellant had also furnished all these details before the Assessing Officer. The Asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be having expertise and the resources for construction of building but not the land at ideal location for construction of housing project. In such like situation, both the parties join their hands together to give shape to the project as both have 'consensus ad idem' to bring into existence a housing project. For the sake of smooth execution of the project they may incorporate certain clauses in joint venture agreement. In the present case, a perusal of the order of the CIT(A) shows that the assessee had invested money on acquiring land and executing construction. The assessee had invested its own money and had undertaken risk from the stage of acquisition of land till sale of flats to the prospective buyers. It had appointed contractors fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it under section 80IB(10) of the Act. The builder has invested money in the construction. It is after completion of the building in terms of the agreement, the assessee was given 22% share of the building area. It is after sale of the built area, in terms of section 80IB(10), the assessee is claiming deduction. As is clear from the joint development agreement, the undertaking of developing and building housing project was jointly undertaken by the assessee and the builder. Therefore, in respect of the residential units numbering 211 in all, the persons who undertook this undertaking are entitled to the benefit of section 80IB(10) of the Act in proportion to the share to which they are entitled to in the built up area." A perusal of the ab ..... X X X X Extracts X X X X X X X X Extracts X X X X
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