Prior to amendment of section 80-IB with effect from 1-4-2010,adjacent residenti

[pawansingla]

IT : Prior to amendment of section 80-IB with effect from 1-4-2010,
adjacent residential units sold to family members could not be
considered as one unit having area exceeding specified limit so as to
deny deduction to assessee

nnn

[2011] 12 taxmann.com 468 (Mum. - ITAT)

IN THE ITAT MUMBAI BENCH 'J'

Emgeen Holdings (P.) Ltd.

v.

Deputy Commissioner of Income-tax, Range 9(1)

PRAMOD KUMAR, ACCOUNTANT MEMBER
AND VIJAY PAL RAO, JUDICIAL MEMBER
IT APPEAL NOS. 3594, 3595, 3647 AND 3648 (MUM.) OF 2009
[ASSESSMENT YEARS 2003-04 AND 2004-05]
JULY 29, 2011

Section 80-IB of the Income-tax Act, 1961 - Deductions - Profits and
gains from industrial undertakings other than infrastructure
development undertakings - Assessment years 2003-04 to 2004-05 -
Whether amendment made to section 80-IB with effect from 1-4-2010, is
prospective in nature - Held, yes - Whether under pre-amended section
as long a residential unit has less than specified area, is as per
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 same merely because end user, by
buying more than one such unit in name of family members, has merged
those residential units into a larger residential unit of a size which
is in excess of specified size - Held, yes [In favour of assessee]