Housing project deduction under section 80IB(10) can apply without land ownership where the assessee acts as developer.

Deduction under section 80IB(10) was held available where the assessee developed a housing project under a development agreement, bore project expenditure, and assumed the risks of construction and development. Ownership of the land was not treated as a pre-condition for the relief; dominion over the project through the agreement was sufficient. The arrangement was also considered in the context of section 2(47) of the Income-tax Act read with section 53A of the Transfer of Property Act, and the assessee was characterised as a developer rather than a mere contractor. The Revenue's challenge to the deduction therefore failed.

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Issues: Whether the assessee was entitled to deduction under section 80IB(10) of the Income-tax Act, 1961 in respect of the housing project, notwithstanding that the land stood in the name of the housing society and the assessee acted under a development agreement.

Analysis: The dispute turned on the nature of the assessee's role in the housing project. The assessment records showed that the assessee had entered into a development arrangement, incurred the project expenditure, and undertook the risks of development and construction. The relevant legal position, as applied, was that ownership of the land was not a pre-condition for deduction under section 80IB(10), and that dominion over the project acquired through development arrangements could suffice. The arrangement was also examined in light of section 2(47) of the Income-tax Act, 1961 read with section 53A of the Transfer of Property Act, and the assessee was treated as a developer rather than a mere contractor.

Conclusion: The assessee was entitled to the deduction under section 80IB(10), and the Revenue's challenge to the relief granted by the first appellate authority failed.

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