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2014 (9) TMI 707 - HC - Income TaxInterpretation of section 80-IB(10)(d) - Effect of amendment w.e.f. 01.04.2005 - Whether section 80-IB(10)(d) which was brought into force w.e.f. 1st April, 2005 would apply to projects that were approved by the local authority prior to it being brought on the statute book – Held that:- Requiring the Assessee to comply with the condition set out in clause (d) of sub-section (10) of section 80-IB merely because he has offered his profits to tax in A.Y. 2005-06 or thereafter, even though his housing project was approved before 31st March 2005, would be requiring the Assessee to virtually do a humanly impossible task – This could never have been the intention of the Legislature - clause (d) of sub-section (10) of section 80-IB cannot have any application to housing projects that are approved before 31st March, 2005 - clause (d) being inextricably linked to the date of approval of the housing project, it will have to be held that the clause operates only prospectively i.e. for housing projects approved after 1st April, 2005 - section 80-IB(10)(d) is prospective in nature and can have no application to a housing project that is approved before 31st March, 2005 - clause (d) of section 80-IB(10) is inextricably linked to the date of the approval of the housing project and the subsequent development/construction of the same, and has nothing to do with the profits derived therefrom - relying upon MANAN CORPORATION Versus ASSTT COMMISSIONER OF INCOME TAX [2012 (9) TMI 700 - Gujarat High Court] – Decided against revenue.
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