Case Law Details
Silicon Estates Vs DCIT (ITAT Bangalore)
ITAT Bangalore held that provisions of section 80IB(10)(e) and (f) of the Income Tax Act are applicable only with effect from 01.04.2010. Said provisions are perspective in nature and cannot be applied to transaction entered prior to 01.04.2010.
Facts- The assessee company having its business of builders and property developers, following mercantile system of accounting, filed its return of income on 30.09.2013 disclosing income at Rs.2,86,000/- after claiming deduction of Rs.4,03,40,492/-u/s. 80IB(10) of the Act.
During the course of scrutiny proceedings, AO observed that the firm has been formed and used only as a colourable device for claiming deduction u/s. 80IB(10) of the Act.
Conclusion- Held that in the case made out of the assessee against the disallowance of deduction made by the revenue in respect of these two issues mainly more than one residential unit in the housing project has been allotted to a person not being an individual namely M/s. KAP (I) Projects and Constructions Pvt. Ltd. and more than one residential unit allotted to an individual including in the names of spouse, minor children and such individual viz., Shri Ramzan Ali Khan. As admittedly, the disallowance relying upon the amendment in the Act in respect of 80IB(1)(e) & (f) is found to be perspective in nature w.e.f. 01.04.2010. Furthermore, since the said provision was not found to be applicable to the material point of time when the allocation of these two disputed flats were made by the assessee, respectfully relying upon the judgment relied upon by the assessee passed by the Hon’ble Karnataka High Court in case of CIT vs. Mandavi Builders, Mangalore (supra), we do not hesitate allow the appeal of the assessee by directing the Ld.AO to pass orders in pro-rata basis as specified hereinbefore.
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