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2010 (10) TMI 684 - AT - Income TaxDeduction under section 80-IA(4) (iii) - The Industrial Park Scheme, 2002 - effective date of notification - Held that:-The notification from the CBDT being a formality, after the approval by Ministry of Commerce and Industry under the scheme. The task of the CBDT prescribed under the Rule and not under the Act, even the issue of notification also without formal application by the assessee, but as a mere a follow up action by the Ministry of Commerce recognizing it as satisfying the conditions under the Software Technology Park Scheme, being so, the approval under section 80-IA cannot be said effective from the date of notification by the CBDT. Number of units - The other reason for denial of benefit under section 80-IA is that the required number of units is not located in industrial park - Held that:- as per original approval letter the assessee is required to establish 30 units and later this was changed to 4 units as per revised approval letter dated 10-4-2007. Due to this, there is a change in the total investment. The explanation given by assessee for change in the actual investment as compared to the proposed investment is bona fide one. - As soon the assessee kept ready the units in the industrial park, the assessee’s obligation under the scheme completes. The assessee in this case has entered into lease agreement/sale agreement with the parties for leasing or sale of industrial units. The assessee entered these agreements with the parties only after the industrial unit came into existence or kept ready. The parties concerned who have taken the industrial units on lease or sale, if they fail to commence the units, the department cannot find fault with the assessee. Addition on the basis of sworn statement of the directors during survey - Held that:- there is no mention of work-in-progress in the questions or in the statement. There is no details of work-in-progress furnished by the assessee. This is an agreed addition for the assessment year 2005-06 on which the assessee filed a revised return offering additional income. Now the assessee cannot go back from its statement and claim the offer is towards work-in-progress and consequently cannot claim set off in this assessment year 2006-07 as opening in work-in-progress. - appeal of the assessee allowed partly.
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