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2011 (11) TMI 384 - HC - Income TaxDeduction u/s 80IA - entitlement of benefit of Industrial Park Scheme 2002 – assessee applied for approval with expected date of commencement of the Industrial Park stated to be 15.03.2006 with 8 units – Approval received on 24.07.2006 – on request of assessee number of units reduced to 3 – applied for grant of occupation certificate on 08.03.07 – received certificate on 02.06.07 – request for enhancing units to 5 being made on 21.09.07 - application rejected on the ground that since the expected date of commencement of the Industrial Park is after 31 March 2006, application not being covered by the Industrial Park Scheme of 2002 and benefits can be availed of only the number of units indicated in the application - advised to apply under Scheme of 2008 - Held that:-Clause (iii) of Section 80-IA (4) requires that the Scheme has to be notified for the period between 1.04.1997 and 31.03.2006. The statutory provision does not contain a specific requirement to the effect that the industrial park had to be developed on or before 31.03.2006. In present case, I.T. Park should have started functioning before 14 March 2007( including one year grace period conferred by Scheme). Since the Petitioners had completed the work of the building on 08.03.2007, they should be regarded as having complied with the norms of the Industrial Park Scheme, 2002. Further, the Empowered Committee while granting approval did not treat the requirement that the industrial park should commence on 15 March 2006 as inviolable and petitioners had in their original application stated that there would be eight units. Hence, the order of the Empowered Committee is set aside and committee is directed to consider the application filed by the Petitioners including for the reduction of units without holding the Petitioners to be disentitled on the ground that has been found to be erroneous in the judgment of this Court. - Decided in favor of assessee.
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