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2020 (11) TMI 778 - HC - Income TaxDeduction u/s 80IA - assessee was required to develop 95% of the area for industrial use, but has failed to do so - HELD THAT:- Approval granted by Ministry of Commerce and Industry itself is a testimony that the assessee company has developed infrastructure facilities in the form of Multi storied structure to accommodate independent units to operate separate identities and individualities of the unit do not disappear only for the reason that the entire developed area has been leased out to a single company. The tribunal has therefore, applied the functional test and has held that each unit occupying a different floor is independent with independent facilities, instrumentation, power connection, door number and facility of functioning independently. It has been held that each unit is in a position to carrying on its activity without depending on other units. Therefore, a finding has been recorded in favour of the assessee that the assessee has successfully satisfied the functional test of an independent unit. Since, the assessee had applied for non automatic approval under paragraph 7 of the scheme, therefore, the requirement contained in paragraph 6(f), which requires a unit not to occupy more than 50% of the allocable area does not apply to the case of the assessee. Rule 18C of the Rules does not have a bearing on the claim of the assessee with regard to eligibility of deduction under Section80IA(4)(iii) of the Act in the fact situation of the case. Even otherwise, whether or not the assessee has complied with the conditions laid down in the Scheme in order to enable it to claim deduction under Section80IA(4)(iii) of the Act is a pure question of fact. The findings recorded by the tribunal have not been assailed by the revenue on the ground that the same are perverse. The aforesaid findings of fact could not be demonstrated to be perverse. - Decided against the revenue and in favour of the assessee
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