Land ownership not essential for housing project deduction where assessee is the real developer bearing project risk.

Deduction under Section 80IB(10) cannot be denied merely because the housing project approval and completion certificate stand in the landowner's name, or because the assessee is not the recorded owner of the land. The decisive test is whether the assessee developed and built the project on its own account, with control, investment, and business risk, rather than functioning as a works contractor for fixed remuneration. On the stated facts, the assessee was the real developer, and the arrangement also supported part performance under Section 53A of the Transfer of Property Act read with Section 2(47)(v) of the Income-tax Act. The deduction was therefore allowable.

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Issues: Whether deduction under Section 80IB(10) of the Income-tax Act, 1961 could be denied merely because the approval and completion certificate stood in the landowner's name and the assessee was not the recorded owner of the land.

Analysis: The deduction under Section 80IB(10) is available to an undertaking developing and building an approved housing project, and the provision does not make ownership of the land a statutory condition. The decisive consideration is whether the assessee undertook development and construction at its own risk and cost, with control over the project, or merely acted as a works contractor for fixed remuneration. On the facts adopted from the earlier binding decision, the assessee had full control over development, bore the investment and business risk, and derived the profit or loss from the project. The agreement structure and possession also attracted the principle of part performance under Section 53A of the Transfer of Property Act, 1882 read with Section 2(47)(v) of the Income-tax Act, 1961, supporting the assessee's claim for the limited purpose of the deduction.

Conclusion: The assessee was entitled to deduction under Section 80IB(10); absence of legal title in the assessee's name and issue of approval in the landowner's name did not defeat the claim.

Final Conclusion: The Revenue's appeal failed, and the Tribunal's allowance of the deduction was sustained.

Ratio Decidendi: For deduction under Section 80IB(10) of the Income-tax Act, 1961, ownership of the land is not a prerequisite where the assessee is the real developer of the housing project and bears the project risk and control; a mere works contractor is different, but a developer acting on its own account cannot be denied the benefit for want of title.

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