CIT Vs. MAHADEV DEVELOPERS

JUDGEMENT

(1.) REVENUE is in appeal against the judgment of the Income Tax Appellate Tribunal dt. 20 -4 -2012 raising following question for our consideration:

(2.) ISSUE pertains to deduction claim by the assessee under section 80IB(10) of the Act on development of a housing project. Revenue, however, holds a belief that the respondent -assessee had not developed the housing project on the ground that the land was not owned by the assessee. The Tribunal, however, held that as per the development agreement, the assessee had to incur and bear all expenses for development of the land. The assessee had the right to allot possession of the constructed units to the members of the housing project after developing the housing project. The Tribunal relied on the decision of this Court in the case of CIT v. Radhe Developers : (2012) 43 (I) ITCL 232 (Guj -HC) : (2012) 341 ITR 403 (Guj) in which this Court had upheld the decision of the Tribunal under similar circumstances making following observations: