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Issues Involved:
1. Condonation of delay in filing the appeal. 2. Eligibility for deduction u/s 80-IB(10) of the Income-tax Act, 1961. Summary: 1. Condonation of Delay: The appeal by the assessee was delayed by 486 days. The delay was attributed to the inadvertent misplacement of the appellate order by an employee, Mr. Sambhaji Gulab Puri, as detailed in his affidavit. The Director of the company corroborated this in his affidavit, explaining that the delay was beyond the control of the assessee. The Tribunal referred to the Supreme Court's judgment in Collector, Land Acquisition vs. Mst. Katiji & Ors. 167 ITR 471, emphasizing a liberal approach towards condonation of delay when substantial justice is at stake. The Tribunal found the reasons for the delay bona fide and condoned the delay, allowing the appeal to be heard on merits. 2. Deduction u/s 80-IB(10): The primary issue was the denial of the assessee's claim for deduction u/s 80-IB(10) amounting to Rs. 2,28,38,980/- for the assessment year 2006-07. The Assessing Officer (AO) denied the deduction on the grounds that the built-up area of the shops and commercial establishments in the housing project exceeded the limits specified in section 80-IB(10)(d), which was inserted by the Finance (No. 2) Act, 2004, effective from 1-4-2005. The AO argued that the built-up area of the commercial establishments was 13.26% of the total built-up area, exceeding the permissible limit of 5% or 2000 sq.ft., whichever is less. The assessee contended that the provisions of section 80-IB(10)(d) were not applicable as the project commenced before 1-4-2005. The Tribunal referred to its earlier decision in the case of G.K. Builders and the Gujarat High Court's decision in Manan Corporation, which supported the assessee's position. The Tribunal also cited the Bombay High Court's judgment in Brahma Associates, which held that the restriction in section 80-IB(10)(d) is prospective and not applicable to projects approved and commenced before 1-4-2005. The Tribunal concluded that the assessee's project, approved by the Pune Municipal Corporation as a residential-cum-commercial project, was eligible for the deduction u/s 80-IB(10). The Tribunal reversed the CIT(A)'s order and directed the AO to allow the deduction. Decision: The appeal of the assessee was allowed, and the decision was pronounced in the open court on 31st December 2012.
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