9911796707
TMI Blog2022 (5) TMI 519X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tax Act, 1961 (hereinafter the 'Act') vide order dated 11.12.2017. 2. The only issue in this appeal of Revenue is against the order of CIT(A) allowing deduction u/s.80IB(10) of the Act despite the fact that the assessee sold three adjacent units to relatives of the same family and also holding that the amendment brought in by the Finance (No.2) Act, 2009 w.e.f. 01.04.2010 will apply for assessment year 2010-11 and is prospective. 3. Brief facts are that the assessee is a builder and developer and developed a housing project at 'Doshi Trinity Park' at Vengaivasal. The assessee claimed deduction u/s.80IB(10) of the Act in regard to this project in the return of income filed on 30.05.2017 in response to notice issued u/s.148 of the Act. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tment well before the provisions of Sec 80IB(10)(e) & (f) were inserted w.e.f. 01.04.2010, which has also not been contested by the AO and therefore as the allotments were undisputedly made prior to the said provision coming into force which could not have been anticipated by the appellant and as such it obviously could not have restricted the allotment of more than one flat to the same individual or to somebody related to such person in compliance to such provision as it appears to be in the instant case and therefore could not be said to have violated the conditionalities prescribed in the provision of Sec 80IB(10)(e) & (f) as contented by the AO. and finally CIT(A) held as under:- "I am therefore favourably persuaded by the reasoning ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts has taken place to father, son and his spouse and the amended provisions of section 80IB(10)(e)(f) as inserted by the Finance (No.2) Act, 2009 w.e.f. 01.04.2010 becomes applicable for and from assessment year 2010-11. The Revenue's contention is that the amended provision will apply for the relevant assessment year because the assessee has booked profit in this year and claimed deduction in this year. We noted that the builders agreement was entered into in May 2007 and sale deed for UDS in land was registered in September 2007 and May 2008 in respect of these sale of flats. In such circumstances, whether the provisions will apply retrospectively or prospectively. This issue was considered by Hon'ble Madras High Court in the case of CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... espectively in respect of the two residential flats in the housing project measuring 1653 Sq. Ft. and 1572 Sq. Ft. respectively (total area being 3225 Sq.Ft.) sold to the husband wife couple? (ii) Whether on the facts and circumstances of the case, the Tribunal had erred in holding the assessee is entitled for deduction under Section 80IB(10) on the ground that amendment brought on 01.04.2010 vide the Clause (f) to Section 80IB(10) barring sale of the flats to the related persons, is prospective in nature and the flats were sold vide agreements prior to the amendment? 11. The relevant year would be the year of the actual sale and not the year when the revenue chooses to recognize the sale. In the instant case, the Appellate Commissioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the aforesaid decision, with which we, in any case, agree fully. Of course, the Revenue has taken these orders on further appeal to the Supreme Court and the matter is pending consideration. 5.1 Even the similar issue was considered by Hon'ble Karnataka High Court in the case of CIT vs. Mandavi Builders , [2020] 121 taxmann.com 36 and exactly identical situation was considered and held that the clauses (e) and (f) to section 80IB(10) as inserted by Finance (No.2) Act, 2009 w.e.f. 01.04.2010 as prospective. The Hon'ble Karnataka High Court held as under:- 4. We have considered the submissions made by learned counsel for the parties and have perused the record. Clauses (e) and (f) to section 80IB(10) of the Act have been inserted by Fina ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
