Assessee is partnership firm enganged in the business of the constructions. Assessee firm enter in to MOU with land owners in the year 2007 and paid Rs. 3 crs as deposit for development of land admeasuing 3 hector and 48 Ares.. As per MOU the land owners shall contribute right of development of land as capital contribution and the assessee firm will look after the constuction and bear the entire cost of construction . The assessee firm and landowners will share the constructed area in the ratio of 65:35

However , development of the project was not progressed as desire by both parteis and therefore the land owners approch another developers and as per development agreement excuted between them and land owners and the assessee firm as consenting party .

As per this development agreement the assesee firm is to received 10 cr immediaetly plus construced aera of 40 ooo sq,ft, after 36 month.

Issues :

year of Taxability of amount of Rs. 10 cr.?

Whether asessee firm can claim deduction of Rs. 3 cr paid to land owners as deduction

Year of taxability of 40000 sq.f.t constructed aera

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