By K. B. Bhujle, Advocate
60. CIT vs. Abode Builders
[2022] 448 ITR 262 (Bom.)
A.Y.: 2007-08
Date of order: 16th February, 2022
S. 80-IB(10) of ITA,1961
Housing project — Special deduction — Whether assessee owner or developer — Approvals granted in name of assessee and taxes related to land paid by assessee — Tribunal granting special deduction on analysis of facts and applying correct principles to facts — Proper.The assessee was a developer and builder. For the A.Y. 2007-08, the AO disallowed the assessee’s claim u/s 80-IB(10) of the Income-tax Act, 1961 on the grounds that (a) the assessee was not the owner of the land on which the project was constructed; (b) the assessee not having invested in the construction activity or done construction, could not be considered as a developer; and (c) the project was approved and commenced before the stipulated date of 1st October, 1998.
The Commissioner (Appeals) allowed the assessee’s claim for deduction, and this was affirmed by the Tribunal.
The Bombay High Court dismissed the appeal filed by the Revenue and held as under:
“i) The Assessing Officer had not disputed the findings of fact of the Tribunal that the assessee had through one of its partners been involved in the project from the beginning with the signing of the principal agreement and primary acquisition of the development rights for the land in question, that the intimation of disapproval issued by the
