Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2012 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (5) TMI 213 - AT - Income TaxDeduction u/s 80IA - notified Industrial Park Scheme, 2002 - business of Hotel, builders and real estate developers - Assessee submitted that there is no reason why the income from the development of industrial park declared by the Assessee in AY 04-05 and 05-06 should not be exempted u/s.80-IA(4)(iii) of the Act as by now the Assessee has satisfied the conditions requisite for grant of the said exemption. - CBDT in Instruction No.4/2009 dt. 30.6.2009 - held that:- From the reasons assigned by the revenue authorities for rejecting the claim of the Assessee for deduction u/s.80-IA(4)(iii) of the Act, it is clear that an Assessee who adopts the percentage completion method of accounting of income from developing industrial park can get deduction of only that part of the profits that are offered to tax in the year in which the notification is received. Had the Assessee in the present case followed project completion of method of accounting of income from developing industrial park, the Assessee would have got the benefit of deduction of the entire profits from the development of industrial park. There is no reason why similar benefit should not be extended to Assessee claiming benefit u/s.80-IA(4)(iii) of the Act when the conditions for grant of deduction were satisfied by the Assessee even before the AO passed the order of assessment. The facts of the present case justify considering the plea of the Assessee for grant of deduction u/s.80-IA(4)(iii) of the Act in respect of profits declared in AY 04-05 and 05-06 and allowing the same as admittedly the conditions for grant of such deduction were satisfied though at a later point of time - Decided in favor of assessee.
|