CIT v. VRM (India) Ltd. - Taxpublishers.in

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The Tax Publishers2019 TaxPub(DT) 0294 (SC) : (2019) 261 TAXMAN 0164

INCOME TAX ACT, 1961

Section 261 Section 80-IB(10)

Where the department preferred SLP to appeal against the judgment of Delhi High Court in CIT & Ors. v. VRM India Ltd. & Ors. [ITA No. 2069/2010 and ITA No. 318 & 320/2014, 18-3-2015] : 2015 TaxPub(DT) 1673 (Del-HC)], whereby the High Court held that if the infrastructure facility is, after its development, transferred to the government, naturally the cost would be paid by the government, therefore, the mere circumstance that the Indian railways or DDA paid for development of a housing project carried out by the assessee, did not mean that the assessee did not develop the residential complex and if the revenue's interpretation is accepted, no enterprise carrying on the business of only developing the infrastructure facility, would be entitled to deduction under section 80-IB(10), hence, the conclusions of the ITAT in this context were rendered after a detailed analysis of the facts and the contracts entered into by the assessee with IRWO and DDA, the Supreme Court dismissed the SLPs in view of low tax effect.

Appeal (Supreme Court) - Special leave petition - Deduction under section 80-IB(10) - Condition precedent--Ownership of project not vested with developer

Department preferred SLP to appeal against the judgment of Delhi High Court in CIT & Ors. v. VRM India Ltd. & Ors. [ITA No. 2069/2010 and ITA No. 318 & 320/2014, 18-3-2015] : 2015 TaxPub(DT) 1673 (Del-HC)], whereby the High Court held that if the infrastructure facility is, after its development, transferred to the government, naturally the cost would be paid by the government, therefore, the mere circumstance that the Indian railways or DDA paid for development of a housing project carried out by the assessee, did not mean that the assessee did not develop the residential complex and if the revenue's interpretation is accepted, no enterprise carrying on the business of only developing the infrastructure facility, would be entitled to deduction under section 80-IB(10), hence, the conclusions of the ITAT in this context were rendered after a detailed analysis of the facts and the contracts entered into by the assessee with IRWO and DDA.Held: The Supreme Court dismissed the SLPs in view of low tax effect.