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2013 (7) TMI 210 - AT - Income TaxDeduction u/s 80IB - housing project - sale of flats to family members - application of restriction with retrospective effect or with prospective effect i.e 1.4.2010 - held that:- amendment has been brought with prospective effect i.e. from 1st day of April, 2010, and there is no indication whatsoever to suggest that these restrictions need to be applied with retrospective effect. The amendment seeks to plug a loophole but restricts the remedy with effect from 1st day of April, 2010, i.e. AY 2010-2011. The law is very clear that unless provided in the Statute, the law is always presumed to be prospective in nature. It will, therefore, be contrary to the scheme of law to proceed on the basis that wherever adjacent residential units are sold to family members, all these residential units are to be considered as one unit. If law permitted so, there was no need of the insertion of clause (f) to section u/s 80IB(10). It will be unreasonable to proceed on the basis that legislative amendment was infructuous or uncalled for – particularly as the amendment is not even stated to be ‘for removal of doubts’. On the contrary, this amendment shows that no such eligibility conditions could be read into pre-amendment legal position. - Deduction u/s 80IB allowed - Decided in favor of assessee. Regarding statement recorded u/s 133A - evidentiary value - AO stated that assessee himself has offered the deduction u/s.80IB(10) in respect of these units during the course of survey proceedings - Held that:- it is only elementary that neither statement recorded u/s.133A has an evidentiary value, nor a legal claim can be declined only because assessee, at some stage, decided to give up the same. - Decided against the revenue.
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