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2019 (4) TMI 976 - BOMBAY HIGH COURTDeduction u/s 80IB - proportionate deduction - as per AO the assessee had breached certain conditions of the said section and therefore, deduction was denied - CIT (Appeals) allowed the appeal in part as held disallowance can only be proportionate to the units with respect to which such breach was committed - two appeals before the Tribunal - Tribunal allowed the assessee's appeal holding that the conditions of which the revenue was alleging breach of, were inserted in the legislation after the allotments were made. HELD THAT:- Tribunal held that the revenue's appeal against the proportionate disallowance would become infructuous. The Tribunal, therefore, allowed the assessee's appeal and dismissed the revenue's appeal. Against this judgment the revenue had filed the present appeal. Firstly, in our opinion the revenue should have filed two appeals when the Tribunal was deciding two separate appeals before itself, may be by common judgment. Tribunal has come to a factual finding that the assessee had already made allotments of certain residential units in favour of the same person/family long before the condition of nonallotment of more than one unit was inserted by the legislature in the said section. That being the position, we do not find that the Tribunal had committed any error in holding that the disallowance cannot be made. Through series of judgments this Court has held that such condition which was inserted by the Parliament with prospective effect cannot be applied to deny the benefit of deduction pointing out that in allotment which was made earlier, there was breach of this condition. Under the circumstances, the question of proportionate disallowance would become irrelevant. - Decided against revenue.
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