TaxTMI 
TaxTMI 
2015 (5) TMI 361
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.... list of five reframed questions. The questions posed by the revenue as substantial questions of law are as under : "(1) Whether on the facts and circumstances of the case, the Hon'ble Income Tax Appellate Tribunal erred in allowing deduction u/s.80IB(10) of the I.T. Act, 1961 for A.Ys.2003-04 even though the project had been sanctioned as residential + commercial by Pune Municipal Corporation and was thus not a housing project ? (2) Whether on the facts and circumstances of the case, the Hon'ble Income Tax Appellate Tribunal erred in holding that up to 31.03.2005, deduction u/s. 80IB(10) was allowable to housing project approved by the local authority having residential units with commercial user to the extent permitted under....
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....igible for deduction u/s.80IB (10)(c) of the Act ?" 2. The facts in Income Tax Appeal No.1628 of 2013 pertaining to the assessment year 2003-04 can be taken up conveniently for the purpose of all these appeals. The Respondent is a developer who had obtained approval of a project by Pune Municipal Corporation for constructing residential and commercial premises consisting of 10 buildings. The Assessing Officer held that in respect of assessment year 2003-04 the assessee declared total sales in relation to its project "Citadel" at Rs. 13,97,83,157/- on which net profit was shown at Rs. 4,88,52,973/- and after adjusting the brought forward losses of Rs. 48,15,337/- the gross total income was computed at Rs. 4,40,37,636/- which was claimed a....
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....hat the amendment to section 80IB(10) with effect from 1.4.2005 did not clarify whether it took effect before the amendment or post amendment. The Commissioner held that amended provisions with effect from 1.4.2005 cannot have retrospective effect so as to be applicable to assessment year 2003- 04 but the implication of inclusion of definition of built-up area in section 80IB(10) being declaratory and curative in nature it was held to be applicable to the assessment year under consideration. 6. Being aggrieved by the order of the Commissioner the assessee filed an appeal before the Tribunal. The Tribunal held that the assessee had commenced development and construction of the housing project in terms of the approval granted by the Corpor....
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....isentitles the Assessee to claim benefit of section 80IB(10). Mr.Gupta submitted that for the assessment year 2005-06 the provisions of section 80IB(14)(a) would be applicable and while computing built up area, the inner measurements of the residential unit at the floor level, including the projections and balconies, as increased by the thickness of the walls but including common areas have to be taken into account. 9. We find that issues in the present case and five questions proposed as essential questions revolve around eligibility to claim benefit of section 80IB(10). Since the project is admittedly approved prior to 1.4.2005 the assessee is covered in the case of the Commissioner of Income Tax Vs. M/s. Happy Home Enterprises decided....