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TMI Blog2014 (8) TMI 154X X X X Extracts X X X X X X X X Extracts X X X X ..... of the case and in law, the ld. CIT(A) has erred on not considering that the Assessee has not fulfilled the conditions prescribed in section 80IB that the built up area of unit should not exceed 1000 sq.ft. 3. The CIT(A) has ignored in ignoring the fact that a survey u/s. 133A was carried out in the case wherein after physical verification it was noticed that certain flats sold were exceeding 1000 sq.ft. area thereby violating the condition laid down in the section 80IB of the Act. 4. The appellant prays that the order of the CIT(A) on the above grounds be set aside and that of AO be restored." 2. The only issue raised by the revenue is regarding allowing the claim of deduction under section 80IB(10) despite the fact that the assessee s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ven revenues case that each of flat on stand alone basis was not a residential unit. Even flats were constructed or planned in such a way that two flats could indeed be merged into one larger unit, as long each flat was an independent residential unit, deduction under section 80-lB (10) could not be declined. What section 80-lB (10) refers to is 'residential unit' and in the absence of anything to the contrary in the Act, the expression 'residential units' must have the same connotations as assigned to it by local authorities granting approval to the project. The local authority had approved the building plan with residential units of less than 1,000 sq.fi. and granted completion certificate as such. There was no ambiguity about the factual ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich such individual is a karta. [Para 7] It is clear that the amendment has been brought with prospective effect from 1-4-2010, and there is no indication whatsoever to suggest that these restrictions need to be applied with retrospective effect. The amendment seeks to plug a loophole but restricts the remedy with effect from 1-4- 2010, i.e., assessment year 2010-11. The law is very clear that unless provided in the statute, the law is always presumed to be prospective in nature. It will, therefore, be contrary of the scheme of law to proceed on the basis that wherever adjacent residential units are sold to family members, all these residential units are to be considered as one unit. If law permitted so, there was no need of the insertion ..... X X X X Extracts X X X X X X X X Extracts X X X X
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