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TMI Blog2019 (2) TMI 2083X X X X Extracts X X X X X X X X Extracts X X X X ..... of section 80IA(2) while adjudicating the issue of claim of deduction u/s 80IA(4) in favour of the assessee for the impugned assessment year?" II. Whether on the facts and circumstances of the case and in law, the ITAT has erred in liberally interpreting the Income Tax Rule 18C and the Industrial Parks Scheme 2008 where the word "shall" has been used to emphasize strict compliance of the conditions laid down for claiming deduction u/s 80IA(4)?" 2. The respondent-assessee is a private limited company and is engaged in Infrastructure Development Project. For the assessment year 2007-08, the assessee had filed a return of income claiming deduction of the income arising out of such activity, in terms of Section 80IA(4)(iii) of the Income Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... subsequent assessment year. 4. The Tribunal referred to sub-Rule 18C of the Income Tax Rules 1962, which uses expression "undertaking shall begin to develop; develop and operate; and maintain and operate ......" and held that the benefit would be available to the assessee who had admittedly begun to develop the Industrial Park. It was noted that the assessee had already sold 21 units during the relevant period which had yielded profits during the said year for which the assessee was claiming necessary deduction. The Tribunal was of the opinion that such profits would be eligible for deduction under the current year as the assessee had booked the profit in its account for the same year. The Tribunal also noted that clause 6 of the scheme au ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der Section 80IA of the Act would be available under the Act. Gujarat High Court in case of Ganesh Housing Corporation Ltd. Vs. Padam Singh, Under Secretary and ors. (2011) 399 ITR 441(Guj) had occasion to examine some of the provisions of the same scheme. It was observed as under: "33. On part of the petitioner, therefore, the requirement was to ensure that before claiming the tax benefit, units indicated in the application are located in the Industrial Park. It is not in dispute that the petitioner in addition to developing the entire park by providing infrastructure, sub divided the plots into smaller units, sold the plots to individual industries and such industries were allocated specific plots for such purpose. The requirement of en ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ner was to provide infrastructural facilities which would be a catalyst for industrial growth by enabling the intending industries to setup their industry in such a Park. Such manufacturing units or the intending industries were in no way under the control of the petitioner. There can be variety of reasons why such industries may not be able to start their units, such as, nonavailability of funds for setting up of the units, pending approval and clearances from the Government and other agencies and such similar reasons which can be attributed only to the intending industries and not to the petitioner. In fact, the scheme requires that the petitioner not only fulfill but continue to fulfill all conditions of approval assessing the period whe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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