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2011 (2) TMI 373 - HC - Income Tax
Deduction u/s.80IB (10) - The assessee had undertaken a construction project called "Brahma Estate" at Pune as per the layout approved by the Pune Municipal Corporation which is the local authority - The profit was computed by following the recognized sale method - Since the expression 'housing project' in Section 80IB (10) is not defined, plain and literal meaning must be assigned to that expression - Held that: - Upto 31/3/2005 (subject to fulfilling other conditions), deduction under Section 80IB(10) is allowable to housing projects approved by the local authority having residential units with commercial user to the extent permitted under the DC Rules / Regulations framed by the respective local authority. - where the commercial user permitted by the local authority is within the limits prescribed under the DC Rules / Regulation, the deduction under Section 80IB(10) upto 31/3/2005 would be allowable irrespective of the fact that the project is approved as 'housing project' or 'residential plus commercial'. - Tribunal was not justified in holding that upto 31/3/2005 deduction under Section 80IB(10) would be allowable to the projects approved by the local authority having residential building with commercial user upto 10% of the total built-up area of the plot.
Amendment to section 80IB(10) to deny Section 80IB(10) deduction to projects having commercial user beyond the limit prescribed under clause (d), even though such commercial user is approved by the local authority. - retrospective or prospective - Held that: - Clause (d) inserted to Section 80IB(10) with effect from 1/4/2005 is prospective and not retrospective and hence cannot be applied for the period prior to 1/4/2005.