Section 80-IB(1) — the law in short
What the courts have decided on section 80-IB(1), in one screen. Read this first; open an entry when you need the facts, the reasoning and the source.
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CIT v Radhe Developers
High CourtHelps taxpayer
I developed a housing project on land I had agreed to buy but never got title to, and the local authority's approval stands in the landowner's name. Can I still claim section 80-IB(10)?
Yes. The Gujarat High Court held that ownership of the land is not a condition of section 80-IB(10). What matters is whether the assessee developed and built the project at its own risk and cost. Here the developer took every decision, invested its own funds, engaged the agencies, bore the entire risk of profit or loss, and paid the landowner a fixed price - so it was not a works contractor. The Court added that in any event, having taken possession under a development agreement and an agreement to sell, the developer was the owner for this purpose by virtue of section 2(47)(v) read with section 53A of the Transfer of Property Act.
Listed strongest first: Supreme Court, then High Court, then Tribunal, then CBDT. Nothing here has yet been read in full by a chartered accountant — open an entry to see where it came from.