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2011 (9) TMI 446 - AT - Income TaxDeductions under 80IB - Built up area - Projects approved in Oct 98 - ‘built up area’ given in the map approved by the local authority were adopted - Finance Act gave definition of Built up area - the appellant was not able to change the ‘built up area’ or the prices fixed with customers or the prospective customers of the same bungalows in the same premises - AO denied exemption as built up exceeded the limit given in definition - Held That:- In the present appeals, the projects were approved prior to amendments, therefore, if the definition is said to be applied to the projects already approved prior to 1.4.2005, it would mean that the assessee would be required to demolish its projects and again reconstruct the same so that the assessee fits into exemption. This is not the intention of the legislature because it may affect the vested rights of the assessee. The Section requires the assessee to build the project within this specified limit already approved when the amendment was not on the statute books, consequently, if the Section is interpreted to be applicable even to the existing projects, the same will lead to the absurdity and that is not the intention of the legislature because ultimately it will lead to a national loss. - Decided in favour of assessee.
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