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Issues Involved:
1. Validity of reassessment proceedings under Section 147. 2. Disallowance of deduction under Section 80IB(10). Detailed Analysis: 1. Validity of Reassessment Proceedings Under Section 147: The assessee challenged the validity of the reassessment proceedings initiated under Section 147 of the Income Tax Act, 1961. The original assessment had allowed the deduction under Section 80IB(10) after considering all relevant facts, including the commercial area in the project. The reassessment was initiated on the grounds that the project was sanctioned as a "residential cum-commercial" project, thus not qualifying for the deduction under Section 80IB(10). The Tribunal noted that the original assessment was completed after a survey under Section 133A and all facts were considered. The reassessment was based on the same set of facts and a different interpretation of the law by a subsequent Assessing Officer (AO), which constitutes a mere change of opinion. The Tribunal relied on the Supreme Court's decision in Kelvinator of India Ltd., which held that a mere change of opinion does not justify reassessment. The Tribunal concluded that the reassessment proceedings based on a change of opinion were invalid and annulled the reassessment order. 2. Disallowance of Deduction Under Section 80IB(10): The AO disallowed the deduction under Section 80IB(10) on the grounds that the project included commercial establishments exceeding the permissible limit, and the project was sanctioned as a "residential cum-commercial" project. The AO relied on the Tribunal's decision in Laukik Developers and interpreted the amendment to Section 80IB(10), effective from April 1, 2005, as clarificatory and applicable retrospectively. The assessee argued that the amendment was prospective and not applicable to projects approved before April 1, 2005. The Tribunal's Special Bench in Brahma Associates had held that the amendment was prospective and allowed deductions for projects with permissible commercial areas. The Tribunal observed that the assessee's project was approved before the amendment and that the commercial area was within the permissible limits as per the pre-amended law. The Tribunal also noted that the decision in Laukik Developers was overruled by the Special Bench in Brahma Associates, which was upheld by the Bombay High Court. The Tribunal concluded that the assessee was entitled to the deduction under Section 80IB(10) for the residential portion of the project, as the project met the conditions of the pre-amended law. The Tribunal reversed the AO's disallowance and allowed the deduction. Conclusion: The Tribunal allowed the appeals, holding that the reassessment proceedings were invalid due to a mere change of opinion and that the assessee was entitled to the deduction under Section 80IB(10) for the residential portion of the project, as per the pre-amended law. The Tribunal directed the AO to allow the deduction as claimed by the assessee.
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