Housing project deduction turns on developer status, not land ownership, where control and risk rest with the assessee.

Section 80IB(10) allows deduction to an undertaking that develops and builds an approved housing project, and ownership of the land is not a mandatory condition. Where the development agreement shows that the assessee had full control over the project, bore the investment risk, carried out construction at its own cost, and appropriated profits and losses, the assessee is treated as the developer rather than a mere works contractor. Possession and part performance may also attract the deeming effect of transfer under Section 2(47)(v) read with Section 53A, supporting the claim even before legal title passes. The deduction is therefore not denied merely because approvals stand in the landowners' names.

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Issues: Whether deduction under Section 80IB(10) of the Income-tax Act, 1961 is available to an assessee developing a housing project when the approval and completion certificate stand in the names of the landowners and the assessee does not hold legal title to the land.

Analysis: The allowance under Section 80IB(10) is linked to an undertaking engaged in developing and building an approved housing project. The provision does not require the developer to be the owner of the land. Where the development agreement shows that the assessee had full control over the project, bore the investment risk, undertook construction at its own cost, and appropriated the profits and losses, the assessee is treated as the developer and not merely a works contractor. For tax purposes, possession and part performance may also attract the deeming effect of transfer under Section 2(47)(v) of the Income-tax Act, 1961 read with Section 53A of the Transfer of Property Act, 1882, supporting the assessee's claim even if legal title had not yet passed.

Conclusion: Deduction under Section 80IB(10) could not be denied merely because the land was not owned by the assessee or the local authority approvals stood in the names of the landowners; the assessee was entitled to the benefit.

Ratio Decidendi: For the purposes of Section 80IB(10) of the Income-tax Act, 1961, ownership of the land is not a mandatory condition where the assessee is in substance the developer of the housing project and bears the project risk and control.

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