Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (4) TMI 1132 - AT - Income TaxDeduction u/s.80-IB(10) - Non-completion of housing project - Held that:- Hon’ble Bombay High Court in the case of CIT Vs. Brahma Associates (2011 (2) TMI 373 - BOMBAY HIGH COURT ), wherein, it has been held that up to 31.03.2005 (subject to fulfilling of other conditions) deduction u/s.80IB(10) is allowable to housing project approved by local authority having residential units which with commercial user to the extent permitted under DC Rules / Regulations framed by respective authority. Amendment in clause (d) of sub-section specifying commercial area up to 10% of project in housing project applies to the project approved after 01.04.2005 and the amendment affected by Finance Act (No.2) of 2004 w.e.f. 01.04.2005 would not have retrospective effect and that approval of housing project prior to 01.04.2005 with commercial user permitted under DC Rules / Regulations framed by respective local authority would still be exempt u/s.80IB(10). It is clear that assessee received approval for C building from PMC vide certificate dated 03.02.2005 but work on C building could not start since additional FSI in lieu of road widening was not received from PMC. The assessee could not plan the work for C building since engineers and architects could not design the structure of building in the absence of FSI. The details of follow up done by assessee with PMC have been duly appreciated by CIT(A). The legislative intent read that the clear provisions of the requisite section, do not permit any proportionate deduction u/s. 80IB(10) of Act. However, in view of the decision in Ramsukh Properties (2012 (12) TMI 360 - ITAT PUNE ) as discussed above, the CIT(A) rightly allowed the proportionate deduction in respect of project completed during the impugned assessment year. The provisions of taxing statute should be construed harmoniously with the object of statute to effectuate the legislative intention. Under the circumstances, proportionate deduction u/s.80IB(10) of the Act is justified. - Decided in favour of assessee
|