IT : A developer of housing project, even if not owner of land, is entitled to section 80-IB deduction
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[2014] 52 taxmann.com 514 (Gujarat)
HIGH COURT OF GUJARAT
Commissioner of Income-tax- IV
v.
Vishal Developers*
MS. HARSHA DEVANI AND MS. SONIA GOKANI, JJ.
TAX APPEAL NO. 507 OF 2014†
OCTOBER 7, 2014
Section 80-IB, of the Income-tax Act, 1961 - Deductions - Profits and gains from industrial undertakings other than infrastructure development undertakings (Housing project) - Assessment year 2007-08 - Assessee entered into a development agreement with co-operative Housing Societies and was given possession of land for construction of Housing units - Assessee claimed deduction at 100 per cent of its profits under section 80-IB(10) - Assessing Officer found that assessee was not owner of land but land was in name of said society, accordingly, he concluded that assessee was not both, a developer and builder, as required by said section and did not fulfil condition of said section - Whether where assessee had taken full responsibility for execution of development project and assessee had borne entire cost of construction and it was developer and builder of housing project and there was nothing under section 80-IB(10) requiring that ownership of land must vest in developer to be able for such deduction, assessee was entitled for deduction - Held, yes [Para 9] [In favour of assessee]
■■■
[2014] 52 taxmann.com 514 (Gujarat)
HIGH COURT OF GUJARAT
Commissioner of Income-tax- IV
v.
Vishal Developers*
MS. HARSHA DEVANI AND MS. SONIA GOKANI, JJ.
TAX APPEAL NO. 507 OF 2014†
OCTOBER 7, 2014
Section 80-IB, of the Income-tax Act, 1961 - Deductions - Profits and gains from industrial undertakings other than infrastructure development undertakings (Housing project) - Assessment year 2007-08 - Assessee entered into a development agreement with co-operative Housing Societies and was given possession of land for construction of Housing units - Assessee claimed deduction at 100 per cent of its profits under section 80-IB(10) - Assessing Officer found that assessee was not owner of land but land was in name of said society, accordingly, he concluded that assessee was not both, a developer and builder, as required by said section and did not fulfil condition of said section - Whether where assessee had taken full responsibility for execution of development project and assessee had borne entire cost of construction and it was developer and builder of housing project and there was nothing under section 80-IB(10) requiring that ownership of land must vest in developer to be able for such deduction, assessee was entitled for deduction - Held, yes [Para 9] [In favour of assessee]
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