Section 80IB(10) deduction upheld where on-money receipts and pre-amendment flat transactions were not accepted as revenue objections.

Section 80IB(10) was construed to deny the revenue's objections to deduction on unaccounted on-money receipts found in search proceedings, and the claim was not accepted in the revenue's favour. The court also held that transactions with flat purchasers were not hit by clauses (e) and (f) where they predated the relevant amendments, so the revenue's challenge on alleged violation failed. On both issues, the questions were answered against the revenue and in favour of the assessee, leaving the assessee's entitlement to deduction undisturbed and causing the appeal to fail.

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Issues: (i) Whether unaccounted money found during search proceedings and explained as on-money received was eligible for deduction under Section 80IB(10) of the Income-tax Act, 1961. (ii) Whether transactions entered into with purchasers of flats were eligible for deduction despite alleged violation of clauses (e) and (f) of Section 80IB(10) of the Income-tax Act, 1961 on the basis that the transactions predated the relevant amendments.

Issue (i): Whether unaccounted money found during search proceedings and explained as on-money received was eligible for deduction under Section 80IB(10) of the Income-tax Act, 1961.

Analysis: The issue was answered in the light of the reasoning adopted in the connected order, and the claim for deduction on the said amount was not accepted in favour of the revenue.

Conclusion: The issue was answered against the revenue and in favour of the assessee.

Issue (ii): Whether transactions entered into with purchasers of flats were eligible for deduction despite alleged violation of clauses (e) and (f) of Section 80IB(10) of the Income-tax Act, 1961 on the basis that the transactions predated the relevant amendments.

Analysis: The issue was considered on the basis of the amendments to Section 80IB(10) and the timing of the transactions, and the objections raised by the revenue were not accepted.

Conclusion: The issue was answered against the revenue and in favour of the assessee.

Final Conclusion: The appeal was not accepted and the assessee's entitlement stood undisturbed.

Ratio Decidendi: Where the substantial questions of law are answered against the revenue on the construction and application of Section 80IB(10), the revenue's appeal must fail.

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