INCOME TAX ACT, 1961

Section 80-IB(10)

Deduction under section 80-IB(10) - Construction not completed within a period envisaged under the statutory provision - Allowability -

Assessee claimed deduction under section 80-IB (10). Revenue alleged that construction was not completed within a period envisaged under the statutory provision. Revenue had argued before Tribunal that assessee had developed a project which was not developed by preceding owners. Tribunal found that assessee had merely acquired the right to develop the open land on which previous owner had not commenced the development. Tribunal allowed the claim of assessee. Held: Tribunal held that assessee had entered into an agreement with the previous Promoters and that assessee had acquired land along with development rights. Further, that housing project constructed by assessee, consisted of building which only included flats. This project was quite different from the project which the previous developer had conceived. Assessee had undertaken development and construction of housing project on a piece of land which was different from the land on which the erstwhile Promoters had completed construction of 40 row houses. Therefore, assessee was eligible to claim deduction under section 80HHC.

REFERRED :

FAVOUR : In assessee's favour

A.Y. :

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