2018 (9) TMI 956

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....ill the disposal of the appeal." 3. The brief facts of the case are that the assessee company is engaged in the business of operation and maintenance of industrial park has filed its return of income for asst. year 2012-13 on 26/9/2012 declaring Nil total income after claiming deduction u/s 80IA(4)(iii) and 80IA(4)(iv) of the Income-tax Act 1961. The case was selected for scrutiny and notice u/s 143(2) and 142(1) of the Income-tax Act, 1961 were issued. In response to notices, the AR of the assessee appeared from time to time and filed various details as called for. 4. During the course of asst. proceedings, the AO noticed that the assessee has built an industrial park on the land allotted by KIADB. The AO further observed that the assessee is deriving income by leasing out the said industrial technology park and claimed deduction u/s 80IA(4)(iii) of the Income-tax Act1961. In order to ascertain correctness on deduction claimed, the AO called upon the assessee to file necessary evidences along with approvals if any to justify deduction claimed c/s 80IA(4)(iii) of the Income-tax Act 1961. In response to the notice, the assessee has filed various details including approval f....

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....o notify the Industrial Park/STP for benefits u/s. 801A of the Act, without any further investigation as to whether the assessee had complied with the terms and conditions envisaged in the scheme. In view of the facts and circumstances of the case as discussed above and in the light of the decision of the Hon'ble Gujarat High Court in the case of Creative Infocity Ltd. (supra), we find substantial merit in the contention of the assessee that the notification to be issued by CBDT is only a formality once the approval is granted by the Ministry of Commerce & Industry, Government of India, and, therefore, hold that once the CBDT notification is issued, the assessee is entitled to the benefits u/s.801A (4)(iii) of the Act from the date of approval by Ministry of Commerce & Industry, Government of India, subject to the compliance of the terms and conditions specified therein. There is nothing to suggest that the benefits of the deduction u/s. 80/A (4)(iii) of the Act are available only from the date of notification by the CBDT. We, therefore, hold that the assessee is entitled for deduction u/s. 8OlA (4)(iii) of the Act for both assessment years 2007-08 & 2008-09, the two years unde....

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.... That the CBDT Notification has reproduced / contains the conditions stipulated in the approval letter of the Ministry of Commerce and Industry, Govt. of India dt.13.4.2006 and is related to approval granted by the Ministry of Commerce and Industry is also clear from the record and has been accepted by the learned CIT(Appeals). 5.3.2 Hence, we find that the only issue for adjudication is whether the CBDT Notification dt.21.2.2012 can be taken to be applicable for the period relevant to Assessment Year 2007-08 onwards in keeping with the approval of the Ministry of Commerce and Industry dt.13.4.2006 or only from the date of the CBDT Notification. The letter of approval issued by the Ministry of Commerce and Industry dt.13.4.2006 grants approval to the assessee for setting up an Industrial Park, subject to certain conditions as stipulated therein. Para 5 in the letter related to the grant of income tax benefits under section 80 IA(4)(iii) of the Act reads as under : " 5. Following conditions in Para 9 of the Industrial Park Scheme, 2002, may particularly be noted for suitable compliance: (i) The income tax benefits under sub-section 4(iii) of....

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....on to deny the assessee the deduction claimed under section 80 IA(4)(iii) of the Act merely because the CBDT Notification was issued much later, on 21.2.2012, when the said Notification is issued in view of the approval granted by the Ministry of Commerce and Industry, Govt. of India on 13.4.2006. One of the terms and conditions specified in the Annexure to the CBDT Notification dt.21.2.2012 at S.No.5 states that - " 5. In case the Industrial Park did not commence by 31.3.2006, fresh approval will be required under the Industrial Park Scheme, 2008 subject to the applicability under that Scheme for availing benefits under sub-section 4(iii) of section 80 IA of the Income Tax Act, 1961." If the CBDT Notification dt.21.2.2012 stipulates a condition of commencement of the Industrial Park / STP by 31.3.2006, the inevitable conclusion is that the benefits are available to the assessee from March, 2006, if the Industrial Park commences by that time. Any other reference, in our considered opinion, would be inappropriate in view of the fact that the Joint Director, District Industries Centre, Bangalore has issued a commencement of Activities Certificate certifying that the Industri....