Case Law Details
PCIT Vs Punit Chettiar alias Punit Balan (Bombay High Court)
The Bombay High Court addressed the issue of income tax deduction under Section 80IA(4)(iii) for an Industrial Park project in the case of PCIT vs. Punit Chettiar alias Punit Balan. The court examined the approval granted by the Ministry of Commerce and Industry and dismissed the Assessing Officer’s disallowance based on an erroneous report.
The Assessee had claimed a deduction under Section 80IA(4)(iii) of the Income Tax Act for the Sai Trinity project in Pune. The Assessing Officer disallowed the deduction based on a letter stating that the Industrial Park did not qualify for the deduction. However, the Assessee’s Review Application before the Ministry of Commerce and Industry was approved, and the Empowered Committee granted the deduction.
The court emphasized that the Central Government’s approval and the Industrial Park Scheme’s fulfillment are crucial for granting the deduction. The Assessing Officer’s role is limited to verifying technical requirements, such as eligibility and audit reports. The court found that the Assessee had fulfilled the conditions and allowed the deduction.
The Bombay High Court upheld the income tax deduction under Section 80IA(4)(iii) for the Industrial Park project, considering the approval from the Ministry of Commerce and Industry. The court dismissed the Revenue’s appeal and ruled in favor of the Assessee.
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