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5. The above said plot was originally owned by M/s Forbes Forbes & Campbell Ltd in the year 1964. The development rights of the plot changed hands from time to time and in the year 2001, M/s Sai lee Developers got the right to develop the plot. Accordingly, it submitted a ITA No. 5407 & 5613 Mum 15 - Ms Shivalik Ventures Pvt. Ltd. proposal to Slum Development Authority (SRA) for development of the plot. After allocation of area for welfare purposes, it was entitled to a saleable area of approximately 5,50,000 sq.ft. Till 2007, M/s Sai lee Developers executed the project on its own. Later it entered into a joint venture agreement with M/s Chandiwala Enterprises on 08-08-2007 for continuing development work of the plot. As per the joint venture agreement, M/s Sai Lee Developers and M/s Chandiwala Enterprises would share the profit in the ratio of 47.50% : 52.50%. At that point of time, it was agreed that they are legally obliged to construct and handover 2,83,000 sq.ft., to other stake holders and the saleable area available with them was 3,15,500 sq.ft. In the mean time, M/s Chandiwala Enterprises assigned its rights to M/s Great Deal Developers P Ltd on 18-01-2008, as per which M/s Great Developers claimed that it is the assignee for the entire project. The claim so made affected the rights of M/s Sai Lee developers and hence it disputed the same and accordingly issued notice of termination of Joint venture agreement it entered with M/s Chandiwala Enterprises. Arbitration petition was also filed by M/s Sailee Developers against the above said two parties. At this stage, the assessee stepped into this project and paid a sum of Rs.15 crores to M/s Sai lee group in the year 2008, as stated above, in anticipation of a joint venture agreement.

entire project. However, M/s. Sai Lee Developers disputed the same and issued notice of termination of the Joint Venture agreement between itself and M/s. Chandiwala Enterprises.
65. M/s. Sai Lee Developers also filed an Arbitration Petition No. 213/2009 against M/s. Chandiwala Enterprises and M/s. Great Deal Developers Private Limited.
66. In the meanwhile, the appellant had paid Rs. 12 crores to M/s, Sai Lee Developers and Rs. 3 crores to M/s, Sai Lee Infotech. (being the associate concern of M/ s. Sai Lee Developers) for acquiring the development rights of the said project situated at Powai. Further, the said sum was paid in anticipation of a formal Joint Venture agreement. The receipt acknowledgment from M/s. Sai Lee stating that the payment is received towards Powai project is enclosed herewith for your perusal (copy enclosed). It may be noted that in the receipts M/s. Sai Lee Developers have acknowledged that they have received the said sum towards Powai projects.
10. Thus, at once, it would be noted that the consideration of Rs.12 Crores paid by SVPL to M/s Sai Lee Developers has come under challenge from Sai Lee on the said vital ground that it was "Project Advance for Sai Lee's property located at Thane and not for Powai land at all. We also have to point out that SVPL making payment of sums to Sai Lee or to its sister concern Sai Lee Infotech Ltd. could not have fetched any rights to SVPL in as much as the property was admittedly handed over by Sai Lee into Joint Venture with Chandiwala. When the said arrangement existed, and now is subject matter of litigation, such direct payment to a single party to the joint venture cannot create any rights in the project at all. In addition ITA No. 5407 & 5613 Mum 15 - Ms Shivalik Ventures Pvt. Ltd.

29. We have considered the rival submission of the parties and have gone through the orders of authorities below. We notice that the Ld CIT(A) has rendered his decision after analysing the facts surrounding the issue. Hence we feel it pertinent to extract below the operative portion of the order passed by Ld CIT(A) on this issue:-

"10. I have considered the facts of the case, submission and contentions of the appellant, as also the order of the AO. It is gathered that Government of Maharashtra (Department of Education) had a plot admeasuring 7901.40 sq. mtrs. at Fort, Mumbai, known as "State Teachers College Compound", which was in a very dilapidated condition and was declared as slum by the Addl. Collector of District of Mumbai. The occupants of the above premises collectively formed a housing society named 'Siddhivinayak Co-operative Housing Society', which executed a development agreement dated 21/4/2006, appointing M/s. Shreelekha Enterprises as the developer, and a Power of Attorney was executed in their favour for development of this property. Later, M/ s. Shreelekha Enterprises entered into a joint venture agreement dated 28/5/2007 with M/s. Shree Kedar Infra Projects Pvt. Ltd., as per which, Shree Kedar agreed to become a joint venture partner and agreed to pay a sum of Rs.25 Crores to Shreelekha and also to bear the cost of obtaining approvals, sanctions of the plans, development charges and cost of construction, etc. Later, Shree Kedar and Shreelekha approached the appellant company with a proposal to co-develop the said property and obtain 70% sale rights of free sale area. As consideration for acquiring such rights, the appellant was required to bear all the expenses relating to the above project, and a Memorandum of Understanding ITA No. 5407 & 5613 Mum 15 - Ms Shivalik Ventures Pvt. Ltd.