Assessee, a partnership firm, was engaged in the business of development of residential apartments, real estate and civil contract works. It claimed deduction under section 80-IB(10) in respect of profits derived from a housing  project. Assessing Officer disallowed claim on the ground that assessee had no direct role in development of project as the project approval and completion certificate were issued in name of one company  Iswarylaxmi Properties P. Ltd  and assessee failed to produce books of account, bills and vouchers to verify as to who actually constructed project.   Commissioner (Appeals) confirmed disallowance, holding that the entire transaction was structured only to divert the benefit of deduction. Tribunal, however, allowed assessee’s appeal, holding that the existence of a joint venture agreement and acceptance of accounts were sufficient to justify claim. On appeal, the Court held that since on date of execution of the joint venture agreement, assessee-firm was not in existence and failed to produce any demonstrable evidence of having made investment or incurred expenditure in project, Assessing Officer was justified in rejecting the claim of deduction. Court held that merely because profits were declared would not mean that assessee would qualify for a deduction, since claim under section 80-IB(10) depended upon actual proof of having undertaken development of a housing  project supported by necessary bills and vouchers. The order of the Tribunal which mechanically accepted assessee’s claim was to be set aside and orders of Assessing Officer and Commissioner (Appeals) restored.  (AY. 2010-11)