Assessee entitled to deduction u/s 80IB(10) for residential cum commercial building approved by the local authority before insertion of clause (d) in s. 80-IB(10) w.e.f. 1st April, 2005 which is prospective and not retrospective

Dy. CIT Vs. Ms/. Shah Builders & Developers (ITAT Mumbai) – Uto 31^st March, 2005, deduction u/s. 80/B(10) is allowable to housing projects approved by the local authority having residential units with commercial user to the extent permitted under the DC Rules/Regulations framed by the respective local authority irrespective of the fact that the project is approved as “housing project” or ‘residential plus commercial’. Tribunal was not justified in holding that upto 31^st March, 2005, deduction u/s. 80/B(10) would be allowable to the projects approved by the local authority having residential building with commercial user upto 10% ofthe total built-up area ofthe plot; cl (d) inserted in s. 80-/B(10) w.e.f. 1^st April, 2005 is prospective and not retrospective.

IN THE INCOME TAX APPELLATE TRIBUNAL
MUMBAI BENCH ‘J’ MUMBAI
ITA No. 3195 & 3196/Mum/2010
Assessment year-2005-06 & 2006-07

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