2012 (4) TMI 117

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....e Tax Rules, 1962 ["Rules"] without any further or other inquiry. 2. The following facts are not in dispute: 2.1 The petitioner applied for approval under Industrial Parks Scheme [IPS], 1999 through non-automatic approval route, where approval had been sought from Ministry of Commerce and Industry ["Commerce Ministry" for short] for claiming deduction under Section 80-IA[4][iii] of the Income Tax Act, 1961. There is no dispute that such approval for parks was given to the petitioner by the Commerce Ministry and the said approval has not either been revoked or withdrawn in any way until today. The petitioner, by a letter dated September 17, 2005 informed the Assistant Commissioner of Income Tax that the Commerce Ministry had granted ap....

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....A of the Act of the industrial park to the petitioner by starting a second line of inquiry in spite of approval granted by the Commerce Ministry. In other words, according to the petitioner, the Board ought to have notified the industrial park on getting a copy of approval letter dated June 21, 2001 of the Commerce Ministry, which is annexed to the writ-application as Annexure: A. 5. In order to appreciate the aforesaid question, it will be profitable to refer to the provision contained in Rule 18C of the Income Tax Rules, 1962 which is quoted below: "18C: Eligibility of Industrial Parks and Special Economic Zones for benefits under section 80-IA [iii]:-  [1]  The undertaking shall begin to operate an industrial park duri....

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....n by the Commerce Ministry to the petitioner in terms of sub-rule [2] of Rule 18C, the Board is duty bound to notify the industrial parks for benefits under Section 80-IA without any further investigation as to whether the petitioner has complied with the terms and conditions envisaged in the scheme. Since the power of grant of approval has been conferred upon the Commerce Ministry, in the absence of any express provision in the Rules, it should be presumed that the authority, which has given approval, has the power of revocation and examination of compliance of the conditions upon which the approval has been accorded. Therefore, it is the duty of the Commerce Ministry to decide whether an industrial undertaking is complying with the condit....