TMI Blog2018 (7) TMI 2260X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the amendment will operate prospectively. Whether the benefit of deduction under Section 80-IB(10) could be given to an assessee in respect of a project otherwise covered by the sub-section but where some of the residential units exceed the area indicated in clause (c) thereof ? - Section 80-IB(10) of the Act refers to projects and, at the first blush, the Revenue s contention appeals. However, a closer scrutiny of such provision reveals that there are several conditions that have to be complied with before the benefit of deduction under such provision can be availed of by an assessee. Clause (c) is one of several such conditions. In such a situation, when an assessee complies with the other conditions and substantially complies wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t reported at (2011) 197 Taxman 459. The assessee now refers to a Supreme Court judgment reported at (2016) 66 taxmann.com 353 (CIT v. Veena Developers) which endorses the Bombay view. The first question raised by the Revenue is, accordingly, answered in terms of the Supreme Court judgment, that the amendment will operate prospectively. As to the second issue, it is not in dispute that the relevant project of the assessee qualifies under the other limbs of Section 80-IB(10) of the Act and falls short of the statutory requirement indicated in clause (c) thereof in the sense that some of the residential units measured upto 1500 sq.ft. and some others were larger. On this identical question, the Appellate Tribunal had taken a similar vie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fit of deduction under such provision can be availed of by an assessee. Clause (c) is one of several such conditions. In such a situation, when an assessee complies with the other conditions and substantially complies with the condition in clause (c), the assessee may be justified in claiming deduction for the proportionate profit of the project referable to the residential units upto the ceiling limit indicated in the provision. Since the deduction which has been permitted by the order impugned passed by the Appellate Tribunal does not cover the proportionate profit pertaining to the residential units exceeding 1500 sq.ft. in area, the reasoning of the Tribunal that a liberal construction of the provision should be made to give such ben ..... X X X X Extracts X X X X X X X X Extracts X X X X
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