N. Kumar , J.—ITA No. 421/2009 pertains to the assessment year 2003-04 and ITA 422/2009 pertains to the assessment year 2004-05 in respect of very same assessee and in respect of very same housing project. Therefore, they are taken up for consideration together and disposed off by this common order. The revenue has preferred these appeals against the order of the Tribunal, which has granted benefit of Section 80IB(10) of the Income Tax Act, 1961 (for short hereinafter referred to as the Act) on the ground that the assessee was an integral part of the construction activities.

2. The assessee firm is engaged in the business of development and construction of residential flats. It came into existence in the year 1995. It purchased agricultural land measuring 2 acres 39 guntas for an amount of Rs. 11,24,100/-at Amruthahalli Village, Yelahanka Hobli, Bangalore North Taluk. The sale deed was not registered. A Memorandum of Understanding was entered on 16.05.1996 with the land owners and the assessee took possession of the property. On 19.12.1997, a joint development agreement was entered into by the assessee as "consenting witness" with (i) the landlords as "owners"; and (ii) M/s.