Clause (d) inserted in sec 80IB (10) with effect from April 2005 is prospective not retrospective

Last updated: 21 March 2012

Court :
INCOME TAX APPELLATE TRIBUNAL

Brief :
On the facts and in the circumstances of the case and law, the Learned CIT(A) has erred in holding that the assessee is entitled to deduction uls.801B(10) of Rs. 1,90,03,948!- by placing reliance upon various decisions ignoring the facts that the legislative intention of providing incentive u/s 801B(10) is only on account of affordable residential dwelling units and that no commercial built up area was allowed prior to 01/0412005 On the facts and circumstances of the case the Id. CIT (A) erred in law in allowing the said deduction, for A.Y. 2007-08, even though the commercial built up area exceeded 2000 sq.ft., while the maximum permissible commercial built-up area is only 2000 sq.ft., which is clearly applicable in terms of clause (d) of section 8OlB(10) and effective from 01/04/2005

Citation :
The Income Tax Officer Ward 12(1)(2), Mumbai(Applicant) Vs Harsh Construction 103/104 Anuradha Apts - 1st Floor TPS Road, Plot no.183 Borivali Mumbai (Respondent)