INCOME TAX ACT, 1961

Section 80-IA(4)(iii)

Deduction under section 80-IA(4)(iii) - Allowability - Tribunal failed to record any finding with regard to the fact whether or not assessee fulfilled the conditions laid down in the Industrial Park Scheme, 2002 -

Assessee-company claimed deduction under section 80-IA(4)(iii). AO after physical verification of the assessee's premises, noted that the conditions laid down by the Ministry of Commerce for claiming deduction under section 80-IA(4)(iii) had not been fulfilled by the assessee. Accordingly, he disallowed the said claim of deduction. However, Tribunal held that the assessee was eligible for claim of deduction under section 80-IA(4)(iii). Held: In exercise of powers conferred by clause (iii) of section 80-IA(4), the Central Government has framed the scheme which is known as Industrial Park Scheme, 2002. In order to claim benefit of deduction under section 80-IA(4)(iii), the conditions mentioned in the scheme have to be complied with. In instant case, the order of the Tribunal was cryptic as no finding had been recorded by the Tribunal whether or not the assessee fulfilled the conditions laid down in the said scheme. Further, no reasons had been assigned by the Tribunal. Since the Tribunal failed to assign any reasons for recording the finding with regard to the fact whether or not the assessee fulfilled with the terms and conditions laid down in the scheme, the order passed by the Tribunal was quashed. Accordingly, the matter was remanded to the Tribunal to decide the same afresh with a direction to record finding whether the assessee complied with the conditions laid down in the Industrial Park Scheme, 2002.

REFERRED :

FAVOUR : Matter remanded

A.Y. : 2006-07

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