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ACIT, Cir-6 (1) , Hyderabad Versus M/s. Annapurna Builders, Begumpet, Hyderabad

ITA No.1006/Hyd/2012 - Dated:- 27-11-2012 - SHRI SANJAY ARORA, ACCOUNTANT MEMBER, AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER For The Appellant : Shri K. Gnana Prakash For The Respondent : Sri K.C. Devdas ORDER PER SAKTIJIT DEY, J.M.: This appeal filed by the Revenue is directed against the order dated 22-3-2012 of CIT (A)-IV, Hyderabad passed in appeal No.365/ACIT 6(1)/CIT (A)-IV/10-11 and it pertains to the assessment year 2008-09. 2. The department has raised the following effective ground before .....

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btaining approval from the Ministry of Commerce, Govt., of India as per Industrial Park Scheme, 2002. For the assessment year under dispute the assessee filed its return of income declaring a total income of ₹ 95,99,032 after claiming deduction of an amount of ₹ 3,45,25,532 u/s 80IA (4)(iii) of the Act. The return was initially processed u/s 143(1). Subsequently, however case was selected for scrutiny and notice u/s 143(2) was issued. In course of assessment proceedings, the AO while .....

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ial activities works out to only 41.26%. The AO therefore asked the assessee to explain why its claim of deduction u/s 80IA(4)(iii) shall not be disallowed. In response to the notice of the AO, the assessee explained that out of total area of industrial park of 281273.97 sft., areas for common facilities is 1,05,190 sft and the net allocable area is 176083.97 sft. The AO after examining the assessee s explanation came to a conclusion that the assessee has constructed total area of 2,72,829 sft w .....

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strial activity. However, the assessee has only utilised 112578 sft., as against 1,46,740 sft., claimed by the assessee. On the aforesaid finding, the AO held that since the assessee has not fulfilled the conditions mentioned in the letter of approval of Government, the assessee is not entitled for deduction u/s 80IA(4)(iii) of the Act. He therefore disallowed the claim of exemption. The assessee being aggrieved of the assessment order filed an appeal before the CIT (A). 4. In course of hearing .....

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as contended by the assessee that the area sold of 5293 sft., was out of area allocated for commercial purposes and which was lying vacant when the application for approval was made to the Board. Since the area meant for commercial purpose, there is no violation to the conditions mentioned in the approval letter of the Government. The assessee contended that the area was sold not during the impugned assessment year but in the earlier assessment year. It was submitted before the CIT (A) that out .....

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r specified industrial activity and has complied with all the conditions specified in the industrial park, it is entitled for deduction u/s 80IA(4)(iii) of the Act. The assessee also relied upon the decision of ITAT, Hyderabad Bench in the case of Meenakshi Infrastructures Pvt. Limited vs. DCIT in ITA 313/Hyd/2010. It was submitted before the CIT (A) that the jurisdictional Tribunal has already decided the issue in favour of the assessee on identical facts for the assessment year 2007-08 in ITA .....

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No.1177/Hyd/2011 dated 30-11-2011 allowed the appeal of the assessee by holding that the assessee is entitled for deduction u/s 80IA (4)(iii) of the Act. 5. The learned DR though agreed that the ITAT has decided the issue in favour of the assessee for the earlier assessment year, he however relied on the grounds raised. The learned AR submitted before us that the issue is squarely covered by the decision of ITAT, Hyderabad Bench in assessee s own case for assessment years 2007-08 in ITA No.1177 .....

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veloped an industrial park after obtaining approval of Government of India as per Industrial Park Scheme 2002. The assessee is also operating and maintaining industrial park. The AO has disallowed the claim of exemption to the assessee on the following grounds:- i) The total constructed area of 2,72,829 sft is less than the approve area of 2,81,279.93 sft. ii) The assessee has sold 5293 sft., in the ground floor out of the allocable area of industrial park in violation of Government Approval. ii .....

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sue before the Tribunal was summarised in para-19 of the order which are as follows:- i) That the certified constructed area of 272829 sq.ft. was less than the area of 281273.97 sq.ft., proposed by the assessee. ii) That the assessee had sold out 5293 sq.ft., of the ground floor after receiving approval for the total area of the park. iii) That some of the tenants had shown different usage of the premises than that shown by the assessee. iv) That the assessee did not use 90% of the net allocable .....

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the conditions under sec. 80IA(4)(iii) are satisfied. It is clear that while the assessee has received such approval and notification, the same has not been withdrawn till date for contravention of any of the conditions, even though there is a specific provision for withdrawal, in case the Central Government finds that the conditions prescribed therein have not been adhered to. However, it is also clear that such withdrawal has to be done by the Central Government only and as long as this is not .....

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