Ownership of land is not a pre-condition for deduction u/s 80 IB (10)

Brief of the case:

Tribunal examined that whether AO is right in rejecting the claim u/s 80 IB (10) on facts that assessee is engaged in business of development of housing project without ownership of land. After examining the facts of the case tribunal decided that profit or loss which may result from execution of the project belonged entirely to the assessee. It can thus be seen that the assessee had developed the housing project. The fact that the assessee may not have owned the land would be of no consequence.

Facts of the case:

• The assessee is engaged in the business of developing residential housing projects. During the course of the scrutiny assessment proceedings, the Assessing Officer noticed that the assessee has claimed a deduction of Rs 49,34,922 under section 80 IB (10) of the Act, but the assessee was not owner of the land on which housing project was developed.

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