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The Tax Publishers2019 TaxPub(DT) 1203 (Bom-HC) INCOME TAX ACT, 1961
Section 80-IB(10)
The restriction of maximum permissible unit area would not be imposed for an assessee to claim deduction under section 80-IB(10) of the IT Act, 1961, as amendment introduced on 1-4-2005 cannot be applied to those housing projects where permission for development is obtained long before the date of the amendment.
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Deduction under section 80-IB(10) - Income from developing and building housing project - Allowability -
In the instant appeal revenue assailed the order of Tribunal holding that assessee was entitled for deduction under section 80-IB, even though the commercial built-up area exceeded 2,000 sq.ft. while the maximum permissible commercial built-up area is only 2,000 sq.ft., which is clearly applicable in terms of clause (d) of section 80-IB(10) effective from 1-4-2015. Issue for consideration in the instant appeal was, whether the restriction of maximum permissible unit area would be imposed for an assessee to claim deduction under section 80-IB(10) of the Income Tax Act, 1961, by virtue of amendment introduced on 1-4-2005 could be applied also to those housing projects where permission from development authorities have been obtained long before the date of the amendment? Held: Following CIT v. Sarkar Builders (2015) 375 ITR 392 (SC) such modified requirement for claiming deduction under section 80-IB(10) cannot be enforced against those assessees, where the housing project obtained development permission prior to such date.
Followed: CIT v. Sarkar Builders (2015) 375 ITR 392 (SC) : 2015 TaxPub(DT) 2156 (SC), CIT v. Happy Home Enterprises (2015) 372 ITR 1 (Bom) : 2014 TaxPub(DT) 4122 (Bom-HC) and Manan Corporation v. Asstt. CIT (2013) 356 ITR 44 (Guj) : 2012 TaxPub(DT) 2686 (Guj-HC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. :
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