Challenged Tax Appeal Dismissed: No Substantial Legal Questions

The appeal challenging the Income Tax Appellate Tribunal's order for Assessment Year 2006-07 under Section 260A of the Income Tax Act, 1961, regarding deduction under Section 80IB(10) was dismissed. The issues raised were decided against the Revenue in previous cases, and no substantial question of law arose. The application of amended provisions under Section 80IB(10)(d) from 01.04.2005 was not entertained as the construction had commenced earlier with approved plans. Similarly, the disallowance under Section 40A(ia) for computing the deduction under Section 80IB(1) did not affect the entitlement to 100% deduction under Section 80IB(10).

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Issues Involved:
1. Challenge to the order of the Income Tax Appellate Tribunal for Assessment Year 2006-07 under Section 260A of the Income Tax Act, 1961.
2. Interpretation of provisions related to deduction under Section 80IB(10) of the Income Tax Act, 1961.
3. Application of amended provisions under Section 80IB(10)(d) w.e.f. 01.04.2005.
4. Disallowance made under Section 40A(ia) as part of eligible profit for computing deduction under Section 80IB(1).

Analysis:
1. The appellant challenged the Tribunal's order regarding the deduction under Section 80IB(10) of the Income Tax Act. The first issue raised was whether the terrace and canopy should be included as part of the residential unit for the deduction. It was concluded that the issues were decided against the Revenue in previous cases, and hence, no substantial question of law arose.
2. The second issue was related to the application of amended provisions under Section 80IB(10)(d) from 01.04.2005. The Tribunal held that the amended provisions would not be applicable if the construction was commenced before that date with approved plans. As the Revenue did not dispute the entitlement of the respondent to the deduction, the question was deemed academic and not entertained.
3. The third issue concerned the disallowance made under Section 40A(ia) for computing the deduction under Section 80IB(1). It was clarified that even if the disallowed expenditure was added to the total income, it would still be entitled to 100% deduction under Section 80IB(10). As the Revenue did not dispute the respondent's entitlement to the deduction, this issue was also not entertained.
4. Ultimately, the appeal was dismissed with no order as to costs, as the questions raised did not give rise to any substantial question of law based on the facts and circumstances of the case.

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