2011 (12) TMI 248 - GUJARAT HIGH COURT

Deduction u/s 80IB - undertaking developing and building housing projects – Revenue stressing on the requirement of ownership of the land to qualify for deduction u/s 80IB(10) – Held that:- Section 80IB(10) provides for deductions to an undertaking engaged in the business of developing and constructing housing projects under certain circumstances. It does not provide that the land must be owned by the assessee seeking such deductions. In present cases it can be seen from the terms and conditions that the assessee had taken full responsibilities for execution of the development projects and have not acted only as a works contractor.

Further, in case of Radhe developers, we find that the assessee had, in part performance of the agreement to sell the land in question, was given possession thereof and had also carried out the construction work for development of the housing project. Combined reading of Section 2(47)(v) and Section 53A of the Transfer of Property Act leads to conclusion even for limited purpose of Income tax that assessee had satisfied the condition of ownership also.

Therefore, assessees were entitled to the benefit u/s 80IB(10) even where the title of the lands had not passed on to the assessees and in some cases, the development permissions may also have been obtained in the name of the original land owners – Decided against the Revenue