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2015 (1) TMI 51 - AT - Income TaxAllowability of deduction u/s 80IB(10) - Applicability of the amended provisions of section 80IB(10) w.e.f 1.4.2005 vide Finance Act, 2004, in respect of the project of the assessee which was approved prior to 1.04.2005 - Fact relating to Development rights of commercial units were transferred to its sister concern M/s Nikunj Developers considered or not – Held that:- Following the decision in The Commissioner of Income Tax-16, Mumbai Versus M/s. Happy Home Enterprises, M/s. Kanakia Spaces Pvt. Ltd. [2014 (9) TMI 707 - BOMBAY HIGH COURT] - there were several conditions that were imposed in the newly substituted section 80-IB(10) that were absent in the section prior to its amendment - the housing projects were approved prior to 31st March, 2005 - the Legislature did not intended to give any retrospectivity to clause (d) of section 80-IB(10) - it is clearly a condition that relates to and/or is linked with the approval and construction of the housing project - clause (d) of subsection (10) of section 80-IB cannot have any application to housing projects that are approved before 31st March, 2005 - The said 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 - the project was approved prior to 1.4.2005 on 10.01.2005 by the local authority – thus, the order of the CIT(A) is upheld – Decided against revenue.
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