2011 (2) TMI 1464 - HC - Income Tax

Bombay HC rules for assessee in Section 80IB(10) appeals, citing precedent.

The Bombay HC ruled in favor of the assessee in appeals challenging the acceptance of the claim under Section 80IB(10) of the Income Tax Act, referencing ... Entitlement to deduction under Section 80IB(10) for profit on sale of shop/commercial unit - non retrospective operation of statutory amendmentEntitlement to deduction under Section 80IB(10) for profit on sale of shop/commercial unit - non retrospective operation of statutory amendment - Assessee entitled to claim benefit under Section 80IB(10) in respect of profit from sale of shop despite the section's reference to residential units, and the subsequent amendment to include shops being prospective only did not preclude the deduction. - HELD THAT: - The Court accepted the view expressed in the earlier decision of this Court in CIT v. Brahma Associates and answered the admitted question of law in favour of the assessee. The ITAT's allowance of the assessee's claim under Section 80IB(10) for profit on sale of a shop was upheld, rejecting the revenue's contention that the benefit was confined to residential units and that the later insertion of a proviso/sub clause to include shops from 1 April 2005 operated retrospectively. The amendment was treated as prospective and did not defeat the assessee's claim for the period in question; accordingly the appeal was disposed of in favour of the assessee following the earlier ratio. [Paras 2]Question of law answered in favour of the assessee and against the revenue; appeals disposed of accordingly with no order as to costs.Final Conclusion: Appeals disposed of in favour of the assessee by following the Court's prior decision in CIT v. Brahma Associates; the ITAT's allowance of relief under Section 80IB(10) for profit on sale of shop is sustained and the amendment adding shops was held prospective only. The Bombay High Court admitted appeals questioning the acceptance of the assessee's claim under Section 80IB(10) of the Income Tax Act. The Court ruled in favor of the assessee, citing a previous judgment in Income Tax Appeal No.1194 of 2010 [CIT V/s. Brahma Associates]. All appeals were disposed of with no costs.