Housing project deduction under Section 80IB(10) upheld where assessee was the real developer despite approvals in landowner's name.

For deduction under Section 80IB(10), the decisive test is whether the assessee in substance developed and built the housing project and bore its risk and cost, not whether the local authority approval or completion certificate stood in the landowner's name. The Gujarat HC followed its earlier rulings and held that formal title in the land or approval documents issued to the original landowner did not defeat eligibility where the assessee was the developer. On facts found identical to earlier cases, the deduction was upheld in favour of the assessee and against the Revenue.

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Issues: Whether deduction under Section 80IB(10) of the Income-tax Act, 1961 was available where the local authority approval and completion certificate stood in the name of the landowner and the transfer of dwelling units was effected by the landowner rather than the assessee.

Analysis: The Court followed its earlier decisions holding that, for the purpose of Section 80IB(10), the decisive consideration is whether the assessee developed and built the housing project in substance and bore the risk and cost of the project, and not whether the legal title in the land had formally passed or whether the approval documents were issued in the assessee's name. It was noted that the facts were identical to those already decided against the Revenue, and that the assessee was entitled to the benefit even where development permissions remained in the name of the original landowner.

Conclusion: The issue was answered in favour of the assessee and against the Revenue; the deduction under Section 80IB(10) was upheld.

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