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2015 (6) TMI 798 - AT - Income TaxRejection of the claim u/s. 80IB(10) - assessee failed to satisfy the conditions laid in the Act - Held that:- The issue under consideration is squarely covered by the decision of the Hon’ble jurisdictional High Court in the case of Manan Corporation vs. ACIT [2012 (9) TMI 700 - Gujarat High Court] wherein held Section 80IB(10) originally indicated 100% deduction on the profits derived from housing projects approved by local authority subject to certain conditions set out in the provision. By virtue of the amendment having come into effect from 1.4.2005, deduction is permissible to housing project having residential units with commercial units to the extent permitted therein. There was no criteria for making commercial construction prior to the amendment of the section and the plans were approved as housing projects by the local authority for both the projects of the assessee. Permission for construction of shops had been allowed by the local authority in accordance with rules and regulations, keeping in mind presumably the requirement of large townships. However, the projects essentially remained residential housing projects and that was also quite apparent from the certificates issued by the local authority and, therefore, neither the absence of such provision of commercial shops nor on account of such commercial construction having exceeded the area contemplated in the prospective amendment could the deduction be denied to the assessee whose plans were sanctioned according to the prevalent rules. The assessee was entitled to deduction under section 80-IB (10). We following the above decision are of the view that clause (d) to section 80 IB (10) which has been inserted w.e.f. 1-4-2005 will not be applicable in the instant case where the project was approved on 31-7- 2002. We therefore, set aside the order of the CIT (A) on this issue. As the issue of allowability under section 80 IB (10) has been restored by the CIT (A) to the file of the A.O. with certain direction against which no appeal has been filed by both the parties. Therefore, those directions remained and A.O. is directed to consider the issue in light of the said directions of the CIT (A). - Decided in favour of assessee.
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