Industrial park deduction under Section 80IA(4)(iii) upheld; business income classification did not defeat the statutory benefit.

Approval of an industrial park under the relevant scheme satisfied the conditions for deduction under Section 80IA(4)(iii), and the Court applied its earlier ruling in the assessee's own case to hold that no fresh enquiry into the character of the receipt was required once eligibility was established. The head of income did not control the availability of the statutory deduction, so assessment as business income did not defeat the claim. Pending consideration of the earlier ruling before the Supreme Court did not alter the position for the present appeal, and the Revenue's challenge was rejected.

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Issues: Whether the assessee was entitled to deduction under Section 80IA(4)(iii) of the Income-tax Act, 1961 for operating an approved industrial park, and whether the income from such activity was assessable under the head 'Income from Business'.

Analysis: The assessee's industrial park was approved by the competent authority under the relevant scheme. The Court followed its earlier decision in the assessee's own case, where it had been held that once the approval and eligibility under Section 80IA(4)(iii) were established, the character of the receipt did not require a fresh enquiry for the purpose of deduction. It was further held that the head under which the income is assessed does not control the availability of the statutory deduction. The pendency of the earlier decision before the Supreme Court did not affect the present appeal, as the statutory scheme provides the manner in which any subsequent variation would operate.

Conclusion: The assessee was entitled to deduction under Section 80IA(4)(iii), and the income was assessable as business income. The Revenue's appeal was rejected.

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