Housing project deduction under section 80IB(10) turns on works contract status, completion conditions, and statutory compliance.

Deduction under section 80IB(10) was examined in light of the development agreement, the completion condition, and the Explanation inserted by Finance (No. 2) Act, 2009. The Tribunal treated the completion issue as a pure question of law and applied the Explanation retrospectively from 01-04-2001. It stated that a housing project executed as a works contract falls outside the deduction, and that all statutory conditions must be satisfied for eligibility. The matter was sent back for fresh examination to determine whether the assessee acted only as a contractor for fixed consideration or had dominant control and developed the project on its own account.

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Issues: Whether deduction under section 80IB(10) of the Income-tax Act, 1961 was available to the assessee in view of the nature of the development agreement, the completion condition, and the Explanation inserted by the Finance (No. 2) Act, 2009.

Analysis: The additional ground on non-fulfilment of the completion condition was treated as a pure question of law and admitted. The Explanation inserted in section 80IB(10) with effect from 01-04-2001 was held applicable to the year under consideration, and the Tribunal stated that an undertaking executing a housing project as a works contract is outside the scope of the deduction. The Tribunal further held that the allowance of deduction cannot be sustained without compliance with all statutory conditions, and that for the assessee the first approval date would be 25-10-2000 for purposes of the completion requirement. The earlier view in Radhe Developers was distinguished on facts, and the Tribunal directed the Assessing Officer to examine whether the assessee had only acted as a contractor for fixed consideration or had acquired dominant control and developed the project on its own account.

Conclusion: The deduction claim was not finally upheld and the matter was sent back for fresh examination in the light of the statutory Explanation and the completion requirement.

Final Conclusion: The Revenue succeeded in getting the impugned relief reopened for reconsideration, with the assessee's eligibility left to be determined afresh on the statutory conditions.

Ratio Decidendi: For deduction under section 80IB(10), every statutory condition must be satisfied, and a project executed as a works contract or without compliance with the completion requirement cannot qualify for the benefit.

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