ITAT held ownership is not a condition precedent for claiming deduction u/s 80IB (of Income Tax Act, 1961)

1. In Pratham Realty Pvt Ltd’s case claimed deduction u/s 80IB (of Income Tax Act, 1961).

2. AO disallowed claim holding assessee as neither owner of the land nor the one who had attained approval of the housing project from the concerned local authority.

3. CIT(A) allowed the claim of deduction.

The ITAT held as under:

4. It is evident from a perusal of the case file that the hon'ble jurisdictional high court has decided this issue of section 80IB(10) (of Income Tax Act, 1961) deduction vis-à-vis ownership of the residential project land in (2012) 341 ITR 403 CIT vs. Radhe Developers along with Revenue's Tax Appeals 1174 to 1176 (supra) in assessee's favour by holding that such an ownership is nowhere a condition precedent for claiming deduction in question.

5. This is not the Revenue's case throughout that the assessee has not borne entrepreneurial risk in developing the Pratham Reality residential project at any stage of the instant proceedings.

6. Paper book placed on record indicates that Revenue's SLP against the hon'ble high court decision stands dismissed on 23-11-2012 in assessee's case itself.

7. We find no reason to interfere with CIT(A)'s orders under challenge holding assessee entitled for section 80IB(10) (of Income Tax Act, 1961) deduction. 

Case Reference - Deputy Commissioner of Income Tax Vs M/s. Pratham Realty Pvt Ltd.

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD "D" BENCH

Before: Shri Pramod Kumar, Accountant Member

and Shri S. S. Godara, Judicial Member

ITA Nos. 2500 & 2501/Ahd/2011

(Assessment Year 2005-06 & 2008-09)