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2018 (7) TMI 2260 - HC - Income TaxDeduction u/s 80IB - Whether the amendment in 2005 to Section 80-IB(10), which was pertinent for the relevant assessment year 2005-06, was prospective in its operation or retrospective ? - HELD THAT:- Whether the amendment would operate prospectively or otherwise, the Tribunal has relied on an order of the Bombay High Court [2011 (2) TMI 373 - BOMBAY HIGH COURT]. The assessee now refers to a Supreme Court judgment in CIT v. Veena Developers [2015 (5) TMI 193 - SUPREME COURT] which endorses the Bombay view. The first question raised by the Revenue is, accordingly, answered in terms of the Supreme Court judgment, that the amendment will operate prospectively. Whether the benefit of deduction under Section 80-IB(10) could be given to an assessee in respect of a project otherwise covered by the sub-section but where some of the residential units exceed the area indicated in clause (c) thereof ? - Section 80-IB(10) of the Act refers to projects and, at the first blush, the Revenue’s contention appeals. However, a closer scrutiny of such provision reveals that there are several conditions that have to be complied with before the benefit of deduction under such provision can be availed of by an assessee. Clause (c) is one of several such conditions. In such a situation, when an assessee complies with the other conditions and substantially complies with the condition in clause (c), the assessee may be justified in claiming deduction for the proportionate profit of the project referable to the residential units upto the ceiling limit indicated in the provision. Since the deduction which has been permitted by the order impugned passed by the Appellate Tribunal does not cover the proportionate profit pertaining to the residential units exceeding 1500 sq.ft. in area, the reasoning of the Tribunal that a liberal construction of the provision should be made to give such benefit that the assessee may be entitled to, does not call for any interference.
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