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2021 (8) TMI 768 - AT - Income TaxBenefit of section 80IA(4)(iii) - independent and distinct units - DR submitted that the Hon’ble High Court has directed that the assessee would be entitled to tax exemption only in accordance with law and the CIT(A) without examining whether the assessee is operating more than three independent units, had allowed the appeals of the assessee - HELD THAT:- Hon’ble High Court has restored the approval dated 13.04.2016 in [2015 (11) TMI 1735 - KARNATAKA HIGH COURT] and held no condition imposed in the non-automatic route has been violated. It was held by the Hon’ble High Court that the conditions enumerated in section 6(f) of IPS 2002 is only applicable to automatic route. The Hon’ble High Court further held that the assessee has established 16 independent and distinct units allocated to TCS and this is evident from the documentary evidence that are placed on record, such as certificate issued by the Joint Director, District Industrial Centre, Certificate from the Department of Information Technology, Biotechnology and Science and Technology, Government of Karnataka,etc. The judgment of the single Bench of the Hon’ble jurisdictional High Court was confirmed by the Division Bench of the Hon’ble High Court in [2019 (8) TMI 1597 - KARNATAKA HIGH COURT]. Since the Hon’ble High Court has categorically held that there is no violation of the condition imposed and has restored the approval dated 13.04.2016 and has further found that the assessee is having independent and distinct 16 units, i.e., let out to TCS, we hold that the CIT(A) is justified in directing the A.O. to grant deduction u/s 80IA(4)(iii) - Decided against revenue.
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