Profits and gains from industrial undertakings other than infrastructure development undertakings

IT : Amendment to section 80-IB(10) putting restriction on commercial area was prospective in nature and would not apply to housing projects approved prior to 31-3-2005
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[2014] 51 taxmann.com 281 (Bombay)
HIGH COURT OF BOMBAY
Commissioner of Income-tax-16, Mumbai
v.
Happy Home Enterprises*
S.C. DHARMADHIKARI AND B.P. COLABAWALLA, JJ.
IT APPEAL NOS. 201 & 308 OF 2012†
SEPTEMBER  19, 2014
Section 80-IB of the Income-tax Act, 1961 - Deductions - Profits and gains from industrial undertakings other than infrastructure development undertakings (Housing project) - Assessment year 2005-06 - Assessing Officer and Commissioner (Appeals) denied benefit of deduction under section 80-IB(10) on ground that commercial area of 7,607 sq. ft. was more than 2,000 sq.ft. as set out in clause (d) of section 80-IB(10) and, therefore, assessee had violated provisions thereof - Provisions of section 80-IB(10) were amended by way of Finance (No. 2) Act, 2004 with effect from 1-4-2005 putting a restriction on quantum of commercial area that could be included in a housing project - Whether this amendment was prospective in nature and section 80-IB could not have any application to housing projects that were approved before 31-3-2005 - Held, yes [Para 35] [In favour of assessee]