The Tax Publishers2020 TaxPub(DT) 2825 (Mad-HC) : (2020) 273 TAXMAN 0159

INCOME TAX ACT, 1961

Section 80-IB(10)

Deduction under section 80-IB(10) would be available in a case where an undertaking develops and builds a housing project. Thus, in case of development of a housing project, the developer would also be entitled to claim deduction under section 80-IB(10).

Deduction under section 80-IB - Income from development and building of housing project - Assessee, developer of housing project -

Issue under consideration was as to whether Tribunal was correct and justified in directing the AO to allow deduction under section 80-IB(10) to assessee land owner when it had not incurred any expenses towards development or construction of the housing project. Held: A plain reading of section 80-IB(10) evidently makes it clear that deduction would be available in a case where an undertaking develops and builds a housing project. Thus, the section clearly draws the distinction between 'developing' and 'building'. Therefore, in case of development of a housing project, the developer would also be entitled to claim deduction under section 80-IB(10) and ownership would not be the criteria. In instant case, it could be culled out from joint venture agreement entered into between assessee and an entity 'E', that the assessee was the developer and 'E' was the builder and mutual rights and obligations were inextricably linked with each other and undoubtedly, the project was a housing project thereby, the assessee would be entitled to claim deduction under section 80-IB (10).

Relied:CIT v. Veena Developers (2015) 93 CCH 0184 ISCC : 2015 TaxPub(DT) 2430 (SC), M/s. Bashyam Constructions P Ltd. v. DCIT [TCA.No.177 of 2018] : 2019 TaxPub(DT) 1289 (Mad-HC), CIT-I v. Moon Star Developers (2014) 88 CCH 0211 : 2014 TaxPub(DT) 2231 (Guj-HC), CIT v. Cajetano Mario Pereira, Melba Malaika Colaco Pereira (2014) 88 CCH 0152 (Bom), CIT-I v. Prathama Developers (2013) 32 Taxmann.com 336 (Guj) : 2013 TaxPub(DT) 2022 (Guj-HC), CIT v. Ceebros Property Development (P) Ltd (2014) 41 Taxmann.com 263 (Mad), CIT v. Sanghvi and Doshi Enterprise (2013) 29 Taxman.com 386 (Mad) : 2013 TaxPub(DT) 0328 (Mad-HC) and CIT v. Radhe Developers (2012) 17 Taxmann.com 156 (Guj) : 2012 TaxPub(DT) 0262 (Guj-HC)

REFERRED :

FAVOUR : In assessee's favour.

A.Y. :



IN THE MADRAS HIGH COURT

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