TaxTMI 
TaxTMI 
2014 (8) TMI 152
X X X X Extracts X X X X
X X X X Extracts X X X X
....f appeal raised by the assessee in both the appeals are identical. 2. The grounds raised by the assessee in ITA No.7147/M/2010 Read as under:- 1) On the facts and circumstances of the case as welt as in Law, the Learned CIT(A) has erred in passing the order without giving an opportunity to the appellant by rejecting the adjournment seeked, reasons assigned by him for doing the same are wrong and insufficient. 2) On the facts & circumstances of the case as well as in Law, the Learned CIT (A) has erred in confirming the action of A.O. in rejecting the claim for deduction u/s.8018(1O) of the income Tax Act' 1961 of Rs. ................/- 3) On the facts a circumstances of the case as welt as in Law, the Learned CIT (A) has erred in....
X X X X Extracts X X X X
X X X X Extracts X X X X
....licable from AY 05-06 is as follows: "(10) The amount of deduction in the case of an undertaking developing and building housing projects approved by a local authority shall be hundred per cent of the profits derived in the previous year relevant to any assessment year from such housing project if, (a) such undertaking has commenced or commences development and construction of the housing project on or after the 1st day of October, 1998 and completes such construction (i) in a case where a housing project has been approved by the local authority before the 1st day of April, 2004, on or before the 31st day of March, 2008; (ii) in a case where a housing project has been, or, is approved by the local authority on or after the 1st day ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed in the housing project does not exceed five per cent of the aggregate built-up area of the housing project or two thousand square feet, whichever is less." 3. The AO denied the claim for deduction u/s.80-IB(10) of the Act, for nonfulfillment of two conditions. (1) As we have already seen what the Assessee was developing was a slum redevelopment project duly approved by SRA. As per the proviso to Sec.80-IB(10)(a) of the Act, a housing project carried out in accordance with a scheme framed by the Central Government or a State Government for reconstruction or redevelopment of existing buildings in areas declared to be slum areas under any law for the time being in force need not satisfy the conditions laid down in Sec.80-IB(10)(a) of ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 80 IB(10) of the Act. Since the scheme was not notified y the CBDT the AO denied the claim for deduction under section 80 IB(10) of the Act. 4. On appeal by the assessee the CIT(A) confirmed the order of AO, giving rise to the present appeal before the Tribunal. 5. We have heard the rival submissions. As far as approval of the Slum Rehabilitation Authority is concerned we find that CBDT has issued a notification dated 3/8/10, whereby it is now notified that any scheme approved under Regulation 33(10) of DCR for Greater Mumbai 1991, and by the SRE for Slum Rehabilitation would be valid for the purpose of Clause- a and b of section 80 IB (10) of the Act. We are of the view that it would be appropriate to set aside the order of the CIT(....
X X X X Extracts X X X X
X X X X Extracts X X X X
....w can only be treated as prospective in effect. So far as pre-amendment position is concerned, as long as residential unit has less than specified area, is as per the duly approved plans and is capable of being used for residential purposes on stand alone basis, deduction under section 80-IB(10) cannot be declined in respect of the same merely because the end user, by buying more than one such unit in the name of family members, has merged these residential units into a larger residential unit of a size which is in excess of specified size. It is useful to take note of legislative amendment by virtue of which the legislature put certain restrictions on sale of residential units to certain family members of a person who has been sold a resid....
X X X X Extracts X X X X
X X X X Extracts X X X X
....even stated to be for removal of doubts': On the contrary, this amendment shows that no such eligibility conditions could be read into pre-amendment legal position. [Para 8] In view of aforesaid discussion, the deduction under section 80-lB(10) was to be allowed to the assessee entirely. [Para 9)" 7. In the present case admittedly the amended provisions of law will not apply and, therefore, so long as per the plans approved by the concerned authorities, the built up area of each flat is less than 1000 sq.ft. the deduction under section 80IB(10) of the Act cannot be denied to the Assessee on the ground that two flats as per approved plan lying adjacent to each other have been combined into one flat and owned by one owner or jointly wit....