I-T - Amendment made to provisions of Sec 80IB(10) from April 1, 2005 cannot be construed as retrospective: HC
By TIOL News Service
ALLAHABAD, APRIL 27, 2018: THE ISSUE IS - Whether the amended provision of Sec 80IB(10) with effect from April 1, 2005 is to be construed as retrospective in nature. NO IS THE ANSWER.
Facts of the case:
The Revenue has preferred the appeal challenging the order passed by the Tribunal wherein the assessee's claim on account of deducting u/s 80IB(10) was accepted and thereby, deleted the additions made by the AO with respect to license fee.
the High Court held that,
++ this issue has been answered in favour of the assessee in Income Tax Appeal No. 99 of 2010 in the matter of sister concern by a judgement and order dated 08.01.2018. The Court held that this question has already been decided while relying on a decision of the Apex Court in the case of CIT vs. M/s. Veena Developers wherein, the benefit of deduction u/s 80IB(10) was allowed to the assessee as it stood prior to 01.04.2005 holding that the amendment which came in the said provision, was prospective and the provision as stood on the relevant date did not contain any stipulation about the shape and size of any commercial activities, which were being carried out on the residential plot on which the deduction was being sought;
++ the finding recorded by the Tribunal is that there was no doubt about the fact that the development activities were being carried out on the plot concerned, so this issues is also answered in favour of the assessee as it is concluded on facts. Further, with regard to license fee, the Tribunal has discussed the matter at length including the two different systems of accounting, which have been used by the assessee and has come to the conclusion that no difference is made because ultimately there has been no escapement of tax and no loss to the Revenue.
(See 2018-TIOL-792-HC-ALL-IT)
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