2014 (8) TMI 1190 - HC - Income Tax

Deduction u/s 80IB(10) in respect of the Dharavi Project approved by SRA - Deduction denied as condition of size of the plot of land had not been fulfilled by appellant - Whether the proviso inserted in clause (b) to section 80IB(10) by the Finance (No.2) Act, 2004 and the subsequent notification No.67/2010 dated 3/8/2010 issued by CBDT notifying the SRA projects is clarificatory in nature and is retrospective in operation? - HELD THAT - The Registrar (Judicial)/Registrar, High Court, Original Side, Bombay to ensure that the original record in relation to this Appeal is summoned from the Tribunal and offered for inspection of the parties. This paper book is treated sufficient for the purpose of admission of this Appeal. However, the Registry must further ensure preparation of complete paper book in accordance with the Rules. The Registry in the first instance must send intimation of admission of this Appeal enclosing therewith a copy of this order so as to enable the Tribunal to act accordingly.

Summary

Issues:
1. Justification of disallowing appellant's claim of deduction u/s 80IB(10) of the Act for the Dharavi Project.
2. Clarification on the retrospective operation of the proviso inserted in clause (b) to section 80IB(10) by the Finance (No.2) Act, 2004 and subsequent notification No.67/2010 dated 3/8/2010 issued by CBDT.

Analysis:

Issue 1:
The High Court, after hearing both sides and perusing the order passed by the Court, admitted the appeal based on substantial questions of law. The first question raised was whether the Appellate Tribunal was justified in law in disallowing the appellant's claim of deduction u/s 80IB(10) of the Act for the Dharavi Project approved by SRA, citing non-fulfillment of the condition of the size of the plot of land by the appellant. Both parties agreed that the appeal deserved admission due to identical claims in related appeals. The Court directed the Registrar to summon the original record for inspection and noted that the paper book was sufficient for admission, but a complete paper book must be prepared as per the Rules. The appeal was to be heard along with other connected appeals.

Issue 2:
The second substantial question of law raised in the appeal pertained to the proviso inserted in clause (b) to section 80IB(10) by the Finance (No.2) Act, 2004 and the subsequent notification No.67/2010 dated 3/8/2010 issued by CBDT. The question was whether this proviso and notification were clarificatory in nature and had retrospective operation. This issue was crucial for determining the applicability and scope of the deduction under section 80IB(10) of the Act. The Court did not provide a specific ruling in the summary but indicated that this question was admitted for further consideration and would likely be addressed during the hearing along with other connected appeals.

In conclusion, the High Court admitted the appeal based on substantial questions of law related to the disallowance of deduction under section 80IB(10) for the Dharavi Project and the retrospective operation of relevant provisions. The detailed analysis highlighted the procedural steps taken by the Court and the issues to be addressed during the hearing, emphasizing the significance of these questions in determining the outcome of the appeal.