TaxTMI 
TaxTMI 
2019 (1) TMI 1471
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....IB of Rs. 8,42,34,862/for A.Y.2008-09 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 80IB(10) effective from 01-04-2015?" 2. Short question is whether the restriction of maximum permissible unit area imposed for an assessee to claim deduction under Section 80IB(10) of the Income Tax Act, 1961. By virtue of the amendment introduced on 1st April, 2005 could be applied also to those housing projects where permission from development have been obtained long before the date of the amendment. 3. The revenue counsel relied on an order dated 20th February, 2013 passed in Income tax Appeal No.198....
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....re approved prior to 31st March, 2005. In ITXA No.308 of 2012, in fact, the project was even completed prior to 31st March, 2005 and only the profits were offered to tax in A.Y. 2005-06. We do not think that the Legislature intended to give any retrospectivity to clause (d) of section 80IB(10). This more so because it is clearly a condition that relates to and/or is linked with the approval and construction of the housing project. At the time when the housing project is approved by the local authority, it decides, subject to its own rules and regulations, what quantum of commercial area is to be included in the said project. It is on this basis that building plans are approved by the local authority and construction is commenced and comple....
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....roved after 1st April, 2005. This is notwithstanding the fact that the profits were offered to tax by the Assessee for the A.Y. 2005-06 or thereafter. 36. There is yet another reason for coming to the aforesaid conclusion. Take a scenario where an Assessee following the project completion method of accounting, has completed the housing project approved by the local authority complying with all the conditions as set out in section 80IB(10) as it stood prior to 1st April, 2005. If we were to accept the argument of the Revenue, then in that event, despite having completed the entire construction prior to 1st April, 2005 and complying with all the conditions of section 80IB(10) as it stood then, the Assessee would be disentitled to the entire ....
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.... comply with the provisions of clause (d) of section 80IB(10). To our mind, we do not think that the condition/restriction laid down in clause (d) of section 80IB(10) has to be revisited and / or looked at and complied with in the assessment year in which the profits are offered to tax by the Assessee. When the Assessee claims a deduction under section 80IB(10), the Assessee is required to comply with such a condition only if it is on the statute-book on the date of the approval of the housing project and it has nothing to do with the year in which the profits are brought to tax by the Assessee. We have come to this conclusion only because we find that clause (d) of section 80IB(10) is inextricably linked to the date of the approval of the ....