Section 80IB(10) deduction available to a developer who built the housing project without owning the land.

Deduction under section 80IB(10) is available where an assessee develops and builds an approved housing project on its own account, even if it does not own the land. Ownership of the land is not an express statutory condition. The decisive test is whether the assessee acted as a developer, bearing project risk and exercising control over execution, rather than as a mere works contractor. Applying that principle, the assessee's role in developing the housing project satisfied the provision, so the deduction was correctly allowed and the Revenue's challenge failed.

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Issues: Whether deduction under section 80IB(10) was allowable to an assessee who developed and constructed a housing project on land not owned by it, or whether the assessee was merely a works contractor and therefore ineligible.

Analysis: The deduction under section 80IB(10) is intended for an undertaking developing and building approved housing projects. Ownership of the land is not a condition expressly required by the provision. On the facts, the assessee had undertaken development of the housing project, borne the project risk, and exercised control over the execution of the project. The authorities below relied on the same legal position as laid down by the jurisdictional High Court in the cases of Radhe Developers and Shakti Corporation, where it was held that the decisive test is whether the assessee developed the project as a developer and not merely as a contractor.

Conclusion: Deduction under section 80IB(10) was correctly allowed, and the Revenue's challenge failed.

Ratio Decidendi: For deduction under section 80IB(10), ownership of the land is not essential if the assessee has developed and built the housing project on its own account and not merely as a works contractor.

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