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TMI Blog2016 (5) TMI 1441X X X X Extracts X X X X X X X X Extracts X X X X ..... e has filed cross-objections. Since common issue arises for consideration in both the appeals and both the cross-objections, we heard the appeals and cross-objections together and disposing of the same by this common order. 2. Sh. Pathlavath Peerya, the Ld. Departmental Representative, submitted that the assessee claimed deduction under Section 80-IB(10) of the Income-tax Act, 1961 (in short 'the Act') in respect of the housing project. The Assessing Officer, however, found that two adjacent flats, viz. Flat Nos.403 and 404, are sold to the same persons, namely, Smt. Latha Ramachandran and Shri K. Ramachandran. The built-up area of the flat was 3225 sq.ft., which is excess of 1500 sq.ft. Therefore, according to the Ld. D.R., the As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctive in operation. Therefore, the residential unit transferred before the amendment may not be hit by clause (f) in Section 80-IB(10) of the Act. The Tribunal further found that flat Nos.403 and 404 measure more than 1500 sq.ft. It does not mean that there is a bar for allowing deduction altogether. According to the Ld. counsel, if some of the units sold exceed the specified area, the consequential disallowance, at the best, has to be proportionate only to the residential units which exceed specified area. 4. The Ld.counsel for the assessee further submitted that when the Revenue challenged before the Madras High Court in Tax Case Appeal No.1172 of 2015, the High Court found that in view of the earlier judgment of Madras High Court in CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r Section 80-IB(10) of the Act was rejected by the Assessing Officer for both the assessment years on the ground that flat Nos.403 and 404 were sold to the same persons, namely, Smt. Latha Ramachandran and Shri K. Ramachandran. The very same issue, namely, sale of flats to Smt. Latha Ramachandran and Shri K. Ramachandran came before this Tribunal for assessment year 2010-11in I.T.A. No.2902/Mds/2014. This Tribunal found that Section 80-IB(10)(f) introduced by Finance Act, 2009 was with effect from 01.04.2010 and it applies prospectively. Therefore, it cannot be applied for assessment year 2010-11 and accordingly, allowed the claim of the assessee. The order of this Tribunal was confirmed by the Madras High Court. Now the matter is pending b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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