Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (3) TMI 643 - AT - Income TaxEligibility to claim deduction u/s 80IB(10) of the Act - Retrospective applicability of section 80IB(10)(d) of the Act - Benefit of 100% deduction taken from the profits earned from undertaking, developing and building housing projects – Held that:- The decision in The Commissioner of Income Tax-II, Pune Versus M/s. Brahma Associates [2011 (2) TMI 373 - BOMBAY HIGH COURT] followed - clause 'd' to section 80IB(10) is prospective in nature and cannot be made applicable to the projects approved prior to 01.04.2005 – also in MANAN CORPORATION Versus ASSTT COMMISSIONER OF INCOME TAX [2012 (9) TMI 700 - Gujarat High Court] it has been held that the condition of built up area provided in clause 'd' is prospective in nature and it is not applicable to projects approved prior to 01.04.2005. CIT(A) was of the view that when a housing project is approved, the law as on the date of approval should be taken into consideration in which event the amended provision, which has come into effect from 01.04.2005, cannot be made applicable - so long as the built up area of shops is less than 10% of the total built up area the assessee cannot be denied the benefit under section 80IB of the Act - the project undertaken by the assessee was approved as a 'housing project' by the local authority in March, 2004 and the construction also having been commenced in 2004 the pre-amended provisions are applicable in which event the assessee is entitled to claim deduction under section 80IB(10) of the Act - thus, the order of the CIT(A) is upheld – Decided against Revenue.
|