TMI Blog2020 (11) TMI 922X X X X Extracts X X X X X X X X Extracts X X X X ..... nit) and the same was contrary to the conditions contemplated under the Industrial Park Scheme 2002 for claiming deduction under Section 80IA(4)(iii) of the Act under which the assessee has undertaken not to allow single unit to occupy more than 50% of the allocable industrial area and recorded perverse finding? HELD THAT:- No dispute with the legal proposition that in order to claim the benefit of deduction under Section 80IA(4)(iii) of the Act, the conditions mentioned in the Scheme have to be complied with. In the present case the order of the Tribunal is cryptic and no finding has been recorded by the Tribunal whether or not the assessee has fulfilled the conditions laid down in the scheme. Tribunal has recorded a finding that an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unal was justified in holding that the assessee is eligible for claim of deduction under section 80IA(4)(iii) even though the conditions laid down by the Ministry of Commerce for the same have not been fulfilled by the assessee as noted by the assessing officer after physical verification of the premises and recorded perverse finding. ii. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in placing reliance on the order of Tribunal, Bangalore Bench, in the case of M /s. Piramal Projects Pvt. Ltd., (139 ITJ 233) and held that unit means separate floor, without appreciating that the intent of Legislature is to encourage the creation of more businesses for the economy and not creation of more floor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 80IA(4)(iii) of the Act and directed the Assessing Officer to grant the deduction. The Commissioner of Income Tax (Appeals) partly allowed the appeal preferred by the assessee. Being aggrieved, the revenue filed an appeal before the Income Tax Appellate Tribunal. The Tribunal, by an order dated 18.07.2014, dismissed the appeal preferred by the revenue. In the aforesaid factual background, the revenue has filed this appeal. 4. Learned counsel for the revenue submitted that the revenue had filed an affidavit before the approving authority that not more than 50% of the allocable industrial area would be allotted to a single unit which is a condition for eligibility under Section 80IA(4)(iii) of the Act. However, admittedly, 1,38,000 sq. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat assessee was granted approval by Government of India for setting up industrial park under the Industrial Park Scheme, 2002 and under the aforesaid proposal, 4 units were to be set up. It is further submitted that a person setting up an industrial park is entitled to tax benefit under clause 5(i) only after proposed number of units are put up. It is further submitted that the approval has been granted to the assessee on revised application under the Scheme and from the perusal of the report of the inspector, it is evident that there were four floors and units were operating. It is also argued that the Commissioner of Income Tax (Appeals) for the Assessment Year 2004-05 sought for the remand report on the ground that the facts in the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase of ACE MULTI AXES SYSTEMS, supra, is not applicable to the fact situation of the case. It is also pointed out that the decision relied by the revenue in the case of RAMNATH AND CO. supra, supports the case of the assessee as the assessee fulfills the criteria laid down in order to claim deduction. 6. We have considered the submissions made on both sides and have perused the record. Before proceeding further, it is apposite to take note of Section 80IA(4)(iii) of the Act, which reads as under: Section 80IA(4) (iii)- any undertaking which develops, develops and operates or maintains and operates an industrial park or special economic zone notified by the Central Government in accordance with the scheme framed and notified by tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... omatic approval. Clause 6(f) provides that no single unit referred to in Column No.2 (of the table given in sub paragraph (b) of paragraph 6) shall occupy more than 50% of the allocable industrial area of an industrial model town or industrial park or growth centre. Clause 7 deals with non-automatic approval. There cannot be any dispute with the legal proposition that in order to claim the benefit of deduction under Section 80IA(4)(iii) of the Act, the conditions mentioned in the Scheme have to be complied with. 8. In the backdrop of aforesaid factual position, when we advert to the facts of the case, we find that the order of the Tribunal is cryptic and no finding has been recorded by the Tribunal whether or not the assessee has fulfill ..... X X X X Extracts X X X X X X X X Extracts X X X X
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