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TMI Blog2016 (6) TMI 1227X X X X Extracts X X X X X X X X Extracts X X X X ..... The contention of the assessee has no merit because these are the special provisions provided for exemption to the builders etc. who have raised the construction of units in Special Economic Zone only. Since the assessee has not carried on any business as a Developer in a unit established in Special Economic Zone or Special Economic Zone, therefore, provisions of Section 115JB(6) will not apply in the case of the assessee. CIT(Appeals) gave a specific finding of fact that the assessee is not situated in a unit or Special Economic Zone, therefore, the case of the assessee does not fall under section 115JB(6). Finding of fact recorded by ld. CIT(Appeals) has not been rebutted through any evidence or material on record. Nothing to interfere wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... veloper of housing project units. During the year assessee company was having income from the sale of its flats. The income of which exempted under section 80IB(10) of the Income Tax Act as each unit is having area less than 1500 Sq. Feets. The assessee company claimed exemption and filed return declaring Nil income and further claimed that the provisions of section 115JB are not applicable to the developer company but the claim of the assessee company was disallowed the AO. Hence this appeal. That during the assessment proceedings the assessee company claimed that the provisions of section 115JB are not applicable to the assessee company as the income of the assessee company is from the business carried as a developer. The claim of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e case of CIT vs. Podar Cement pvt. Ltd. (1197)226 ITR 625, 648 (SC). The Hon'ble Supreme Court has held that if there is two possible interpretation, it is well settled that the one favourable to the assessee has to be preferred. In view of the above, the assessing Officer is not justified by levying a tax to the assessee developer company on the exempted income under section 115JB of the Income Tax." 4. The ld. CIT(Appeals), considering submissions of the assessee and material on record, dismissed both the appeals of the assessee. The findings of ld. CIT(Appeals) in para 5 of the impugned order read as under : 5. The facts of the case, the charging of MAT u/s 115BJ by the A.O. and the submissions/arguments of the AR during the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ic Zone (which are defined under SEZ Act, 2005). Therefore, the case of the assess does not fall under u/s 115JB(6). The interpretation given on behalf of the assessee defies the logic of enacting the amended provisions of section 115JB. The exception cannot be as large as the main provision so such so to nullify the legislative intent of imposing tax on specified companies u/s 115JB. In the circumstances, there is no merit in AR's claim on the issue. Hence the action of the A.O. in charging the MAT in this case is sustained. Accordingly, this ground of appeal is dismissed." 5. I have heard ld. Representatives of both the parties and perused the material on record. The ld. counsel for the assessee reiterated the submissions made before a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... word 'Unit' is not restricted to the units in Special Economic Zone Act, 2005 but is applicable to units at any place. The contention of ld. counsel for the assessee has no merit because these are the special provisions provided for exemption to the builders etc. who have raised the construction of units in Special Economic Zone only. Since the assessee has not carried on any business as a Developer in a unit established in Special Economic Zone or Special Economic Zone, therefore, provisions of Section 115JB(6) will not apply in the case of the assessee. The ld. CIT(Appeals) gave a specific finding of fact that the assessee is not situated in a unit or Special Economic Zone, therefore, the case of the assessee does not fall under section 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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