Deduction u/s 80IB(10) can be availed even if the assessee doesn’t have “Legal ownership” over the land:

Assessee is engaged in the business of construction and development of housing projects and had claimed deduction u/s 80IB(10). AO denied the said deduction merely on the counts that the land was not owned by the assessee and the certificate for eligibility of deduction was issued by the local authorities in the name of the owner of the land. The Hon’ble ITAT observed that though the land was not owned by the assessee, the development rights were with the assessee as per the agreement with the owner of the land. The assessee had all rights to develop the project and even the risk was with the assessee. Assessee was rewarded with profits arising out of such development activities and not any fixed receipt. Possession of land had been passed on to the assessee, expenses on development had been debited to the P&L a/c and the sale proceeds had been credited to the P&L a/c. In light of the above, it was held that the assessee was rightly eligible for deduction u/s 80IB(10) in light of the ratio laid down by the Hon’ble Gujarat High Court in the case of Radhe Developers.