S. Ravindra Bhat, J. (Open Court):

1. The following substantial question of law arises for consideration in these appeals under Section 260-A of the Income Tax Act, 1961 (hereafter 'the Act'):-

Whether the Income Tax Appellate Tribunal was right in view of the contracts in question that the respondent-assessee is entitled to deduction under Section 80-IB(10) of the Income Tax Act, 1961?

2. These appeals of the revenue stem from decisions of the Income Tax Appellate Tribunal (ITAT) for assessment years (AY) 2002-03; 2004-05 and 2005-06. The Commissioner of Income Tax (Appeals) (“CIT(A”)) and the ITAT had concurrently ruled against the revenue. Briefly the facts are that the assessee is engaged in the business of building and developing of housing projects. In its return of Income, the assessee claimed deduction under Section 80-IB(10) which was declined by the Assessing Officer (“AO”) in the course of assessment under Section 143(3). The AO observed that the assessee company had been undertaking construction activity since 1996-97. The company had been allotted in FY 2001-02 a housing project worth Rs.12,53,65,692/- for constructing housing units measuring 450 sq. ft. each o