Case Law Details
CIT vs. Sarkar Builders (Supreme Court of India)- Restriction on extent of commercial area in ‘housing project’ imposed w.e.f. 1.4.2005 does not apply to housing projects approved before 1.4.2005 even though completed after 1.4.2005 – Section 80-IB(10).
Brief Facts of the Case and Question of Law
Brief Facts:
There are various respondents/assessees involved in the assessment. Also the Assessment years are different but the question of law raised by Income Tax Authorities is same. The assessees are engaged in the business of developing and building housing projects. In the said housing projects, commercial establishments were also constructed [exceeding the limits specified in clause (d) to the Section 80IB(10)]with the prior approval of local authorities as per law prevailing in that area.
Section 80IB(10) introduced by the Finance Act, 1999 w.e.f. 01.04.2000 provides for deduction of 100% of profits in the case of an undertaking developing and building housing projects when such profits are derived in the previous year relevant to any assessment year from such housing projects, provided the conditions contained in the said sub-section are satisfied. The Assessees have met all the conditions laid down in u/s 80IB(10) of the Income Tax Act, 1961 (“The Act”) and have accordingly computed and claimed deduction.
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