COMMISSIONER OF INCOME TAX Vs. RADHE DEVELOPERS

JUDGEMENT

(1.) These appeals arise in similar factual background leading to a common question of law debated before us. These appeals are, therefore, being disposed of by this common judgment.

(2.) Since certain facts in two streams of cases are slightly different, we would record such facts in both sets of appeals.

(3.) In Tax Appeal No.546 of 2008 (M/s. Radhe Developers), the assessee had claimed deduction under Section 80IB(10) of the Income Tax Act, 1961 ('the Act' for short) of Rs. 24,75,940/- on the premise that such income was derived from the business of the undertaking developing and building housing project approved by the local authority. To execute such housing project, the assessee had entered into a development agreement with Vinodbhai Nathabhai Patel (HUF) and others as party of the First Part and heirs of deceased Ambalal Motibhai Patel as party of the Second Part. In the said development agreement dated 18.5.2000, the assessee was referred as a party of the Third Part. The party of the Second Part represented the land owners and party of the First Part represented those, who had previously entered into an agreement to purchase such land. Under this development agreement, the assessee agreed to develop the land belonging to party of the Second Part on certain terms and conditions. We would refer to relevant terms and conditions at a later stage.