PRINCIPAL COMMISSIONER OF INCOME TAX Vs. YASH ASSOCIATES

JUDGEMENT

(1.) Revenue is in appeal against the Judgment of the Income Tax Appellate Tribunal (for short "Tribunal"), raising following questions for our consideration:-

(2.) The issue pertains to Respondent-Assessee's claim for deduction under Sec. 80IB (10) of the Income Tax Act, 1961 (for short "the Act"), for the Assessment Year 2010-11. The main objection of the Revenue to such claim was that the construction was not completed within a period envisaged under the statutory provision. Revenue had argued before the Tribunal that the Assessee had developed a project which was not developed by the preceding owners. The Tribunal found that the Assessee had merely acquired the right to develop the open land on which previous owner had not commenced the development. The Tribunal, therefore, allowed Assessee's appeal, making following observations:-

(3.) It can thus be seen that the Tribunal has come to factual findings, essentially holding that the Assessee had entered into an agreement with the previous Promoters and that the Assessee had acquired land along with development rights. Further, that the housing project constructed by the Assessee, consisted of building which only included flats. This project was quite different from the project which the previous developer had conceived. The 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. Under the circumstances, no question of law arises.