Housing project deduction hinges on developer control, not land title, where the assessee bears risk and cost.

For deduction under section 80IB(10), land ownership is not indispensable where the assessee has dominant control over the housing project and develops it at its own risk and cost. An assessee who enters into a development agreement, bears development expenses, manages planning, approvals, bookings and possession, and retains the project's profit or loss is treated as a developer rather than a mere works contractor. Applying the jurisdictional High Court's view, the Tribunal held that title in the land need not have passed if the assessee was not simply executing a contract for work. The deduction was therefore allowable.

---

---

Issues: Whether the assessee was entitled to deduction under section 80IB(10) of the Income-tax Act, 1961 despite not being the land owner and despite the Revenue's claim that it was only a works contractor.

Analysis: The assessee had entered into a development agreement, carried out the project at its own risk and cost, exercised control over the housing project, bore development expenses, handled planning, approvals, bookings and possession, and retained the profit or loss from the project. The land ownership issue was not decisive for the deduction where the assessee had practically acquired control over the land and project. The Tribunal relied on the jurisdictional High Court's view that, for section 80IB(10), an assessee may qualify as a developer even if title in the land has not passed, so long as the project is developed at its own risk and cost and the assessee is not merely executing a works contract.

Conclusion: The assessee was a developer and not a mere works contractor, and the deduction under section 80IB(10) was allowable.

Final Conclusion: The Revenue's challenge to the allowance of deduction failed, and the order granting relief to the assessee was sustained.

Ratio Decidendi: For deduction under section 80IB(10), ownership of land is not indispensable where the assessee has dominant control over the housing project and develops it at its own risk and cost; such an assessee is not treated as a works contractor.

---