ITAT upheld deduction u/s 80IB(10) (of Income Tax Act, 1961) as entire risk was of the assessee
ITAT upheld deduction u/s 80IB(10) (of Income Tax Act, 1961) as entire risk was of the assessee
Assessee was a propterty developer and its case was picked up for scrutiny and assessment was done u/s 143(3) (of Income Tax Act, 1961). AO disallowed claim u/s 80IB(10) (of Income Tax Act, 1961) and added the deduction claimed to the assessee's income. CIT(A) held that the entire risk was of the assessee who was developing the project and there was no agreement for fixed remuneration as a contractor. It allowed the deduction u/s 80IB(10) (of Income Tax Act, 1961). ITAT confirmed the order of CIT(A).-501339
1. The assessee was picked up for scrutiny assessment and the assessment u/s.143(3) (of Income Tax Act, 1961) was framed. AO disallowed the claim of the assessee made u/s.80IB(10) (of Income Tax Act, 1961) and added the deduction claimed to the assessee's income.
2. CIT(A) partly allowed the appeal and directed the AO to allow the deduction u/s.80 (of Income Tax Act, 1961)-IB(10).
3. On appeal, the ITAT held as under:
“4. The above findings of the ld.CIT(A) are supported by the development agreement entered between the Society and the Developer, i.e. present assessee. The Revenue has not placed any contrary material on record rebutting the finding of the ld.CIT(A) that the risk is borne by the Developer and also there is no fix remuneration paid by the Society to the assessee. Therefore, we do not see any reason to interfere with the order of the ld.CIT(A), same is hereby upheld. Thus, ground Nos.1 & 2 of Revenue's appeal are devoid of any merit, the same are dismissed.”
Case Reference - The ITO vs M/s.Shreenathji Corporation
IN THE INCOME TAX APPELLATE TRIBUNAL " A " BENCH, AHMEDABAD
BEFORE SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER And
SHRI KUL BHARAT, JUDICIAL MEMBER
I.T.A. No.1870/Ahd/2011
(Assessment Year : 2008-09)
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