TMI Blog2012 (12) TMI 59X X X X Extracts X X X X X X X X Extracts X X X X ..... 80-IB(10) as amended by the Finance Act, 2005, w.e.f. 1st April, 2005 - law as it existed in the asst. yr. 2004-05 when the assessee submitted its proposal for slum rehabilitation and the permission for carrying out the development was accorded on 17th Nov., 2003 and when the assessee commenced development is to be applied - Revenue’s appeal is dismissed - I.T.A. No.1907/Mum/2010 - - - Dated:- 20-1-2012 - SHRI D. MANMOHAN SHRI T.R. SOOD, JJ. Appellant by Shri Shantam Bose. Respondent by Shri Shashi Tulsiyan. ORDER PER T.R. SOOD, AM : In this appeal, the Revenue has raised the following ground : On the facts and in the circumstances of the case and law, the learned CIT(A) has erred in holding that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 30-06-2011). 6. After considering the rival submissions, we find that the Hon ble Bombay High Court in the case of CIT vs. Brahma Associates (333 ITR 289), while reversing the decision of Special Bench of the Tribunal, observed as under : Held that clause (d) inserted in section 80IB(10) with effect from April 1, 2005, is prospective and not retrospective and hence could not be applied for the period prior to April 1, 2005. Since deduction under section 80IB(10) were on the profits derived from the housing projects approved by the local authority as a whole, the Tribunal was not justified in restricting the section 80IB(10) deduction only to a part of the project. However, in the present case, since the assessee had accepted the deci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t periods have already been given by us. An analysis of the same shows the following conditions were required to be satisfied at various point of time : Asst. yr. Conditions 2000-01 (a) Housing project to be approved by local authority (b) Project to commence on or after 1-10-1998 (c) Project was to be completed before 31-3-2001 (d) Size of the plot of land for the project should have a minimum of 1 acre. 2001-02 (a) Housing project to be approved by local authority (b) Project to commence on or after 1-10-1998 (c) Project was to be completed before 31-3-2001 (d) Size of the plot of land for the project should have a minimum of 1 acre. (e) The residential unit has a maximum built-up area of one thousand square feet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r after 1-10-1998 (d) The project was to be completed before 31-3-2008, if the approval was given by a local authority before 1-4-2004 and within 4 years from the end of the financial year in which the approval came where the approval was given on or after 1-4-2004. (e) Size of the plot of land for the project should have a minimum of 1 acre. (f) The residential unit has a maximum built-up area of one thousand square feet where such residential unit is situated within the city of Delhi or Mumbai or within twenty-five kilometres from the municipal limits of these cities and one thousand and five hundred square feet at any other place. (g) the built-up area of the shops and commercial establishment included in the housing project shou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed as a housing project by the local authority but the area of commercial space as approved by the local authority is more than 2,000 sq. ft. The assessee commences the project but is able to complete only in the previous year relevant to asst. yr. 2005-06. As per the change in law from asst. yr. 2005-06 with regard to the area of commercial space in a housing project the assessee would loose his eligibility to claim deduction. In such cases, there is definitely grave hardship to the assessee. The interpretation sought to be canvassed by the learned Departmental Representative will also lead to absurd situation. Let us assume an assessee obtains approval of a housing project prior to 1st April, 2005 say in previous year relevant to asst. yr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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