9911796707
TMI Blog2012 (12) TMI 59X X X X Extracts X X X X X X X X Extracts X X X X ..... (d) of Section 80IB(10), inserted by Finance Act 2004, w.e.f. 1.4.2005 has no retrospective effect and applies only w.e.f. 1-4-2005 relevant to A.Y. 2005-06 and onwards which has binding effect in this case." 2. After hearing both the parties, we find that the deduction u/s.80IB(10), which was claimed by the assessee, was denied by the AO because the assessee had constructed more commercial area than permitted under clause (d) of sec. 80IB(10). 3. On appeal, the ld. CIT(A) allowed the deduction by following the order of his predecessor in the case of M/s. PNK Corporation in Appeal No.CIT(A)-XV/IT-5/ACIT15(3)/2008-09 dated 25- 07-2008 as well as the decision of Special Bench of the Tribunal in the case of Brahma Associates vs. JCIT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Tribunal had, vide para 7.2 (pages 7 to 10), observed as under : "7.2 We find the Tribunal, in the abovementioned decision has followed the decision of the Tribunal in the case of Saroj Sales Organisation (supra) and at paras 24 to 27 have held as under: 24. Now we will deal with main issue in this appeal, i.e., whether the law as it existed in the asst. yr. 2004-05 when the assessee submitted its proposal for slum rehabilitation and the permission for carrying out the development was accorded on 17th Nov., 2003 and when the assessee commenced development is to be applied or the law as amended by the Finance Act, 2005 w.e.f. 1st April, 2005 whereby it was laid down that the built-up area of the shops and commercial establishment incl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roject to be approved by local authority (b) Project to be approved by local authority before 31-3-2001 (c) Project was to commence on or after 1-10-1998 (d) Size of the plot of land for the project should have a minimum of 1 acre. (e) The residential unit has a maximum built-up area of one thousand square feet where such residential unit is situated within the city of Delhi or Mumbai or within twenty-five kilometres from the municipal limits of these cities and one thousand and five hundred square feet at any other place. 2003-04 & 2004-05 (a) Housing project to be approved by local authority (b) Project to be approved by local authority before 31-3- 2005 (c) Project was to commence on or after 1-10-1998 (d) Size of the plot of la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of approval by the local authority assumed importance. Commencement of project is not of any importance because it dates back to 1st Oct., 1998 the starting point when the incentive provision providing for deduction of profits from housing projects were introduced. Up to asst. yr. 2004-05, the provision did not impose any period within which the project has to be completed, except in asst. yrs. 2000-01 and 2001-02. In asst. yr. 2001-02, the condition was that the project should be completed before 31st March, 2003. From asst. yr. 2005-06, the time within which the project has to be completed has been given importance. 26. There is truth in the plea of hardship put forth on behalf of the assessee. Let us assume an assessee applies and obta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... On the same project in asst. yr. 2005-06, the assessee would not get the benefit of s. 80- IB(10). We, therefore, find no grounds to take a view different from the one taken by the Co-ordinate Bench of the Tribunal in the case of Saroj Sales Organisation (supra). 27. We are of the view that we are not supplying any words to the "statute but are only holding that the law as it existed in the asst. yr. 2004-05 when the assessee submitted its proposal for slum rehabilitation and the permission for carrying out the development was accorded on 17th Nov., 2003 and when the assessee commenced development is to be applied. Therefore, the submissions of the learned Departmental Representative in this regard cannot be accepted. We are of the view t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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