Projections play crucial roles in the ADHM construction on noncommutative $\R^4$. In this article a framework for the description of equivalence relations between projections is proposed. We treat the equivalence of projections as ``gauge equivalence'' on noncommutative space. We find an interesting application of this framework to the study of U(2) instanton on noncommutative $\R^4$: A zero winding number configuration with a hole at the origin is ``gauge equivalent'' to the noncommutative analog of the BPST instanton. Thus the ``gauge transformation'' in this case can be understood as a noncommutative resolution of the singular gauge transformation in ordinary $\R^4$.

19 pages, AMSLaTeX, v2: refined explanations, typos corrected