Law: Income Tax Act, 1961

Section: 80-IA

Section 80-IA of the Income-tax Act, 1961 - Deductions - Profits and gains from infrastructure undertakings (Information Technology Park) - Assessee was an association of persons formed by co-owners of a piece of land - It executed a declaration with a view to develop land for constructing an Information and Technology Park - In terms of development plan, area for industrial use was 90 per cent of allocable area - Assessee preferred an application under section 80-IA(4)(iii) for approval of Information Technology Park under Industrial Park Scheme, 2008 - Assessee's application was rejected mainly on ground that assessee failed to obtain occupation certificate for complete building from competent authority - Whether since there was nothing in law which prohibited obtaining of occupation certificate phase wise or stage wise, based on completion of construction of industrial area, impugned order passed by authority below was not sustainable - Held, yes [Para 25][In favour of assessee] FACTS â–  The assessee was an association of persons formed by co-owners of a piece of land. It executed a declaration with a view to develop the land for constructing an Information and Technology Park. â–  A letter of intent was obtained from the Joint Director of Industries (IT), Development of Commissioner (Industries) of the Directorate of Industries, Government of Maharashtra. â–  The assessee constructed the floor area of 44,558 sq. mtrs. wherein the allocable area was 26,568.35 sq. mtrs. And the area for industrial use was 23,911.51 sq. mtrs. which according to the assessee was 90 per cent of the allocable area wherein there were 89 industrial units. â–  The assessee preferred an application under section 80-IA(4)(iii) for approval of the Information Technology Park under the Industrial Park Scheme, 2008. â–  The said application was rejected mainly on the ground that assessee failed to obtain occupation certificate for the complete building from the competent authority. â–  On writ: HELD â–  A bare perusal of section 80-IA(4)(iii) indicates how the section applies to the deductions in respect of profits and gains from infrastructure…