Case Law Details
S. 80-IB(10) deduction available to taxpayer who is not merely a land owner but carries on activities along with promoter for developing & building approved housing project
CIT v. Shravanee Constructions (Karnataka High Court)
Section 80-IB(10) of the Act is applicable not for merely building housing project but for developing and building housing project. In terms of the agreement, the taxpayer not only undertook the development activities on the land in question, but in fact the taxpayer entered into an agreement of sale with the owners of the land, paid the entire consideration. However, it did not execute a registered sale deed in its name. Thus, the Assessee contributed the land.
Also the Assessee, undertook the aforesaid development activities on the said land and thus complied with all other conditions, which have to be fulfilled before claiming benefit under Section 80-IB(10) of the Act. The promoter has invested money in the construction. It is after completion of the building in terms of the agreement the taxpayer was given 22 percent share of the building area. Further after the sale of built area the Assessee claimed deduction under Section 80-I B(10) of the Act.
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