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2014 (2) TMI 593 - AT - Income TaxDisallowance of deduction claimed u/s 80IB(10) of the Act - Effect of amendment - Non receipt of completion certificate Held that:- The law as it existed in the A.Y.04-05 when the Assessee submitted its proposal for slum rehabilitation and the permission for carrying out the development was accorded on 17.11.2003 and when the Assessee commenced development is to be applied the legislature would not have intended to take away a vested right without clear words to that effect in the provisions of Sec. 80-IB(10) as amended by the Finance Act, 2005, w.e.f. 1-4-2005 The decision in Saroj Sales Organisation. Versus Income-Tax Officer [ 2008 (1) TMI 420 - ITAT BOMBAY-E] followed - the law as it existed in the A.Y. 04-05 when the Assessee submitted its proposal for slum rehabilitation and the permission for carrying out the development was accorded on 17.11.2003 and when the Assessee commenced development is to be applied. The decision in Hiranandani Akruti J.V v/s. DCIT [2010 (3) TMI 876 - ITAT MUMBAI] followed- a housing project will also consist of commercial area to a permissible limit - the assessees had started the project in the year 2001 when sub-clause (d) to Section 80IB(10) was not in existence, hence it cannot be applied on such projects - By applying the principle of harmonious construction to interpret the provisions under Sub-section (10) to Section 80IB as amended w.e.f. 1.4.2005, the Legislature always intended that the project must be approved by the local authority - thus in those approved projects where construction has been started much earlier than 1.4.2005, the assessees are required to complete the plan as it has been approved thus, the amended provisions under Section 80 IB(10) w.e.f. 1.4.2005 are not applicable and the assessees are eligible for the claimed deduction u/s 80 IB (10) of the Act Decided in favour of Assessee.
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