TMI Blog2020 (1) TMI 1068X X X X Extracts X X X X X X X X Extracts X X X X ..... t March 1999. Admittedly in the instant case, the industrial undertaking of the appellant-assessee is not located in the Industrial Backward District, which has been mentioned in the Notification issued by the Central Government. It is pertinent to note here that the first Notification was issued by the State Government on 03rd September 1997, whereas the second Notification was issued on 07th October 1997. In both the aforesaid Notifications, the District in which the industry of the assessee is located has not been mentioned as Industrially Backward District. It is also not in dispute that the assessee had set up the industry before coming into force of the Industry Notification. Therefore, the condition mentioned in Section 80-IA(2)(i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... OF 2009 C/W ITA NO.69 OF 2014 - - - Dated:- 9-1-2020 - MR. ALOK ARADHE AND MR. RAVI V. HOSMANI JJ. Sri. K.V. Aravind, along with Sri. Dilip, Advocates for Appellants. Dr. C.P. Ramaswamy and Sri. Balaram. R. Rao, Advocates for respondent. ORDER ALOK ARADHE J., In both the appeals, similar issue arises for consideration. ITA No.435/2009 pertains to Assessment Year 2004-2005, whereas ITA No.69/2014 pertains to Assessment Year 2005-2006. The appeals were admitted by a Bench of this Court by order dated 02.01.2020 on the following substantial question of law. Whether respondent-assessee was entitled to claim deduction under Section 80IA(2)(iv)(c)of the Income Tax Act, 1961 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax Appellate Tribunal. The Tribunal by order dated 09.04.2009, inter alia, held that the declaration of the area for claiming the relief under Section 80IA of the Act was not made under Notification with retrospective effect, which was not within the knowledge of the assessee. Therefore, assessee is entitled to claim deduction under Section 80IA of the Act. In the aforesaid backdrop these appeals have been filed. 3. The learned counsel for the respondent - assessee inviting the attention of this Court to Section 80-IA(2)(iv)(c) of the Act submitted that in order to claim the benefit of deduction under Section 80IA of the Act, the industry is required to be situated in the backward area which may be specified in the Notifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssion, learned counsel for the assessee has also placed reliance on decision of the Hon ble High Court of Rajasthan in COMMISSIONER OF INCOME TAX VS. TRINITY HOSPITAL , (2004) 140 TAXMAN 323 (RAJASTHAN). 7. It is also urged that the appellant-assessee is entitled to parity in the matter of deduction as the area in which the industry is situated, has already been declared to be a backward area under Section 80HH(2) of the Act. It is also urged that though equity and taxation are considered to be strangers but, an attempt should be made to ensure that they do not remain so always and if a construction, which results in equity rather than any injustice, then such construction should be preferred to the literal construction. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... foresaid well settled legal principles, before proceeding further, it is apposite to take note of Section 80-IA(2)(iv)(c) of the Act, which reads as under: 80-IA(2)(iv)(c):-In the case of an industrial undertaking located in such industrially backward district as the Central Government may, having regard to the prescribed guidelines, by notification in the Official Gazette, specify in this behalf, as an industrially backward district of Category A or an industrially backward district of Category B, and , it begins to manufacture or produce articles or things or to operate its cold storage plant or plants at any time during the period beginning on the 1st day of October, 1994, and ending on the 31st day of March, 2000; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ision, which admittedly the assessee does not fulfill. Therefore, the assessee is not entitled to claim deduction under Section 80-IA(2)(iv)(c) is concerned the same is sans substance. 14. It is pertinent to note here that Section 80HH and Section 80-IA(2)(iv)(c) are two different and independent provisions. The decision of Hon ble Rajasthan High Court relied upon by the learned counsel for the respondent is of no assistance to the assessee in the fact situation of the case as the aforesaid decision was based on the concession that once an area is declared to be Industrially Backward Area under Section 80HH (2) of the Act, the same has to be taken under Industrial Backward Area for the purposes of this Act. In other words, the afor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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