Case Law Details
CIT Vs Rishabh Infopark Pvt. Ltd. (Madras High Court)
The only issue in the appeals of the Revenue is that the Income Tax Appellate Tribunal erred in holding that the lease rent income received from letting out modules of Software Technology park to various lessees would constitute income from business and eligible for deduction under Section 80IA of the Act.
We need not labour much on this issue, on account of the circular No.16 of 2017 issued by the CBDT dated 25.04.2017. The CBDT after taking note of the two decisions of the Karnataka High Court held that it is now a settled position that in the case of an undertaking which develops, develops and operates or maintains and operates an industrial park/SEZ notified in accordance with the scheme framed and notified by the Government, the income from letting out the premises / developed space along with other facilities in industrial park/SEZ is to be charged to tax under the head ‘Profits and Gains of Business.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
(Judgment was delivered by M.DURAISWAMY, J.)
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